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