JSS 3 BUSINESS STUDY 2ND TERM

Which of the following is a major source of personal finance?

Theory Questions

1. Explain three major sources of personal finance and how they help an individual.

2. Describe the purpose of a trial balance and list two errors that can be detected using a trial balance.

3. Explain the differences between a trading account and a profit and loss account.

4. What is a balance sheet? List and explain two items that appear under assets and two under liabilities.

5. State and explain three advantages of having proper office procedures in a business organization.

• Borrowing from friends

• Stealing from others

• Working and earning income

• Misusing public funds

A trial balance is prepared to

• detect errors in the ledger

• calculate net profit

• record daily transactions

• store financial data

Which of these accounts is prepared to determine gross profit or loss?

• Balance Sheet

• Trading Account

• Cash Book

• Ledger

The net profit of a business is determined in the

• balance sheet

• trading account

• profit and loss account

• trial balance

The Trading, Profit, and Loss Account is important because it

• helps to prepare office procedures

• determines the financial position of a business

• records only cash transactions

• keeps track of office supplies

Which of the following is an asset in a balance sheet?

• Loan

• Debts owed to creditors

• Land and buildings

• Expenses

A balance sheet shows the financial position of a business

• at a given date

• monthly

• daily

• quarterly

Office procedures refer to

• methods of running office activities efficiently

• storing files in an office

• writing shorthand

• typing personal letters

The main purpose of a trading account is to determine

• the financial position of a business

• the profit or loss of a business

• the expenses incurred by a business

• the bank balance of a business

Which of these is NOT a component of a profit and loss account?

• Revenue

• Expenses

• Fixed Assets

• Net Profit