Financial Statement of Sole Trader

The correct heading for the statement of financial position of a sole trader at the end of December 2020 is ‘Statement of financial position:

• For the year ended 31 December 2020 .

• As at 31 December 2013.

• For the period ended 31 December 2020 .

• As at December 2020.

A sole trader buys goods totalling ₹10,000 and sells 60% of them for ₹ 9,000 what is the trader’s gross profit?

• ₹9,000

• ₹3,000

• ₹6,000

• ₹4,000

Gross profit equals:

• Sales less the cost of goods sold

• The difference between the sales and purchases

• Purchases less closing inventory

• Sales less closing inventory

The cost of goods sold is:

• Sales less purchases and opening inventory

• Purchases plus opening inventory

• Opening inventory plus purchases less closing inventory

• Sales minus opening inventory

From the following list identify a current liability:

• Mortgage on the premises

• Accounts receivable

• Bank loan for 5 years

• Accounts payable

Statement used to prepare financial statements of the business is called:

• Financial Statement

• Bank Reconciliation Statement

• Trial Balance

• All of these

Discount received is an example of:

• General Income

• Net Income

• Direct Income

• Indirect income

Balance Sheet is a statement of:

• Liabilities

• Capital

• Assets

• All of these

Which of the options is an example of business liability?

• Cash

• Creditors

• Building

• Land

How would an accountant record an increase in cash?

• Debit
• Credit