Accounting provides data or information on

(A) Income and cost for the managers
(B) Financial conditions of the institutions
(C) Company’s tax liability for a particular year
(D) All the above

The answer is (D) All the above

Long term assets without any physical existence but, possessing a value are called

(A) Intangible assets
(B) Fixed assets
(C) Current assets
(D) Investments

The answer is (A) Intangible assets

The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as

(A) Current assets
(B) Fixed assets
(C) Intangible assets
(D) Investments

The answer is (A) Current assets

Copyrights, Patents and Trademarks are examples of

(A) Current assets
(B) Fixed assets
(C) Intangible assets
(D) Investments

The answer is (C) Intangible assets

The debts which are to be repaid within a short period (a year or less) are referred to as,

(A) Current Liabilities
(B) Fixed liabilities
(C) Contingent liabilities
(D) All the above

The answer is (A) Current Liabilities

Gross profit is

(A) Cost of goods sold + Opening stock
(B) Sales – cost of goods sold
(C) Sales – Purchases
(D) Net profit – expenses

The answer is (B) Sales – cost of goods sold

Net profit is calculated in which of the following account?

(A) Profit and loss account
(B) Balance sheet
(C) Trial balance
(D) Trading account

The answer is (A) Profit and loss account

In order to find out the value of the closing stock during the end of the financial year we,

(A) do this by stocktaking
(B) deduct the cost of goods sold from sales
(C) deduct opening stock from the cost of goods sold
(D) look in the stock account

The answer is (A) do this by stocktaking

Which of these best explains fixed assets?

(A) Are bought to be used in the business
(B) Are expensive items bought for the business
(C) Are items which will not wear out quickly
(D) Are of long life and are not purchased specifically for resale

The answer is (D) Are of long life and are not purchased specifically for resale

The charges of placing commodities into a saleable condition should be charged to

(A) Trading account
(B) P & L a/c
(C) Balance Sheet
(D) None of the above

The answer is (B) P & L a/c