Trading and Profit & Loss Account

Which of the following will not affect the gross profit

• Cost of transporting goods to customers

• Opening Stock

• Sales Revenue

• Closing Stock

Gross Profit is positive 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 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

• Purchases

• Manager's Salary

• Opening Stock

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

What is net profit ?

• Sales less purchases
• sales revenue less cost of sales and expenses
• the cash in the business bank account
• revenue less expenses

Which of the following is NOT appear in Profit and Loss Account 

• Purchases of Furniture
• Insurance Premium 
• Repair of Furniture
• Salesman Commission