Quiz On Final Accounts

Trading account is prepared to find out

• Net Profit or Loss

• Gross Profit or Loss

• Financial Position

• Profit or Loss

Opening stock is...

• Debited in trading account

• Credited in trading account

• Debited in Profit & Loss account

• Credited in profit & Loss account

Wages is an example of

• Direct Expense

• Indirect Expense

• Capital Expense

• Revenue Expense

Profit and Loss account would not include

• Salaries

• Carriage on sales

• Rent received

• Drawings

Copyrights, Patents and Trademarks are

• Current Assets

• Fixed Assets

• Intangible Assets

• Liabilities

Balance Sheet is prepared

• for a period

• on a particular date

• for life of the business

• None of the above

Depreciation account appearing in the trial balance is shown in

• Profit & Loss account

• Trading account

• Deducted from the concerned assets A/c

• Shown on Liability side

Outstanding expenses are

• Expenses not due but paid

• Expenses due but not paid

• Expense forgot to show in Profit &Loss account

• None of the above

Provision for bad & doubtful debts is created as fixed percentage( %) of

• Profit amount

• Debtors amount

• Sales amount

• Capital amount

Ram paid rent 50000 in the year. But actual rent was 48000 in a year. Here

• Rs. 2000 is an outstanding expense

• Rs.2000 is an accrued income

• Rs.2000 is a prepaid expense

• Rs.2000 is an unearned income