FS001

Which report gives a review on the profitability of a business?

• Statement of changes in equity

• Cash flow statement

• Income statement

• Balance sheet

Which of the following options is not recorded in the Balance sheet?

• Cash

• Rent expenses

• Building

• Goodwill

The main operation expenses of a business are termed as:

• Operating expenses

• Non-administration expense

• Selling expenses

• Administration expense

Cash receipt received from the sales fixed assets are recorded under the head of:

• Other activities

• Investing activities

• Financing activities

• Operating activities

Which statement shows the flow of cash and cash equivalents during the financial period?

• Statement of changes in equity

• Cash flow statement

• Balance sheet

• Income statement

Long term assets without any physical existence but, possessing a value are called ______.

• Intangible assets

• Fixed assets

• Current assets

• Investments

The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as ______

• Current assets

• Fixed assets

• Intangible assets

• Investments

Gross profit is ___

• Cost of goods sold + Opening stock

• Sales – cost of goods sold

• Sales – Purchases

• Net profit – expenses

Suppliers personal a/c are seen in the ____

• Sales Ledger

• Nominal ledger

• Purchases Ledger

• General Ledger

Net profit is calculated in which of the following account?

• Balance sheet

• Profit and loss account

• Trial balance

• Trading account