Trading and Profit & Loss Account

Which of the following will not affect the gross profit 

• Cost of transporting goods to customers
• Purchase Returns
• Import  Duty
• Sales Returns

Gross Profit is incurred when 

• net sales are equal to net purchase
• sales are less than cost of goods sold
• net purchases is more than net sales
• sales exceed cost of sales

Sales =$120000, Cost of goods sold=$85000, Calculate the Gross profit

• $35000
• $205000
• $70000
• $1200000

Sales=$30000; Carriage Inwards=$1000; Purchases=$20000;Purchase Returns=$1000

• $11000
• $12000
• $13000
• $10000

Why is Trading Account made

• to find total cash in the business
• to find the Gross Profit
• to find the total assets and liabilities of the business
• to find the net profit

Which of the following expense is added to the Cost of Purchase

• Factory Wages
• Carriage Inwards
• Factory rent
• Carriage Outwards

Which appears both in Trading and Profit & Loss Account

• Cost of Sales
• Net Profit
• Sales
• Gross Profit 

Which of the following does NOT appear in the Trading Account

• Closing Stock
• Purchase Returns
• Manager's Salary
• Import Duty

Mr X wants to see his net profit for the year. Which financial document will provide the information

• Trial Balance
• Profit & Loss Account
• Cash Book
• Trading Account

How is discount received shown in the final accounts?

• as income in the Profit & Loss Account
• as an expense in the Trading Account
• as an expense in the Profit & Loss Account
• as income in the Trading Account