F4 Accounting ch4 supp ex

Which of the following is/are part if the final accounts?

(i) Income statement

(ii) Statement of financial position

(iii) Trial balance

(iv) Books of original entry

• (i) and (ii)

• (iii) and (iv)

• (i), (ii) and (iv)

• All of the above

• A

• B

• C

• D

Which of the following statements is/are correct

(i) Final accounts usually refer to the balance sheet and the income statement prepared at the end of the accounting period.

(ii) An income statement is prepared to report the profit or loss made by a firm during an accounting period.

(iii) Gross profit is calculated by deducting the cost of goods sold from sales.

(iv) Net profit is the excess of gross profit and other revenues over expenses.

• (iii)

• (i) and (iv)

• (i), (ii) and (iii)

• All of the above

Which of the following accounts would not have its balance transferred to the profit and loss account at the end of an accounting period?

• Purchases

• Sales

• Drawings

• Returns inwards

  
  

• (iii) and (iv)

• (i), (ii) and (iii)

• (i), (ii) and (iv)

• All of the above

• A

• B

• C

• D

Which of the following accounts would have their balances transferred to the profit and loss account at the end of an accounting period?

(i) All expenses accounts

(ii) All revenue accounts

(iii) All asset accounts

(iv) All liability accounts

(v) Capital account

• (i) and (ii)

• (iii), (iv) and (v)

• (i), (ii), (iii) and (iv)

• All of the above

  
  

Which of the following correctly explains why the cost of goods purchased may not be equal to the cost of goods sold?

• There may be closing inventory.

• There may be opening inventory.

• There may be opening and closing.

• There may be returns outwards and returns inwards.

• $50,000

• $56,100

• $43,900

• $60,100

Which of the following statements is incorrect about carriage inwards?

• It is a cost associated with the purchase of goods.

• It refers to the cost of transporting goods from suppliers to the business.

• Its account would be closed off at the end of the financial year and its balance would be added to the cost of goods sold.

• It refers to the cost of transporting goods to customers of the business.