Final Accounts and Depreciation Quiz

Aarush runs a small business and needs to assess his financial performance. He decides to prepare his final accounts to understand how well he has done over the year.

• Beginning of the year

• End of the year

• During the year

• None of these

Aditi is preparing her business's financial statements at the end of the year. She is reviewing various documents to ensure everything is in order. Which of the following documents is not part of her final accounts?

• Trading Account

• Profit & Loss Account

• Cash Flow Statement

• Balance Sheet

Anika runs a small business selling handmade crafts. At the end of the financial year, she wants to assess her business performance. The main purpose of the Trading Account is to determine:

• Net profit

• Gross profit

• Owner’s equity

• Assets

Aarav is reviewing the financial documents of his newly established café. He wants to understand the overall financial position of his business. Which document should he refer to?

• Trading Account

• Profit & Loss Account

• Balance Sheet

• Partner’s Capital Account

Siya is preparing her financial statements for the year. She needs to determine where to show her closing stock in the accounts. Closing stock is shown on the:

• Debit side of Trading Account

• Credit side of Trading Account and asset side of Balance Sheet

• Liabilities side of Balance Sheet

• As an expense in P&L Account

Myra, a small business owner, has some outstanding expenses that she needs to account for. She is unsure where to show these expenses in her financial statements. Can you help her understand where outstanding expenses are shown?

• Debit of Profit & Loss Account and Liabilities side of Balance Sheet

• Credit of Trading Account

• Assets side of Balance Sheet

• None of these

Kiara is reviewing her company's financial statements and comes across a line item labeled 'Prepaid Expenses'. She wonders, on which side of the Balance Sheet do these expenses appear?

• Liabilities

• Assets

• Capital

• Revenue

Nikita has provided consulting services to a client but has not yet received payment. This income is considered accrued income. Where will this accrued income be shown in her financial statements?

• Dr. side of Profit & Loss Account

• Assets side of Balance Sheet

• Liabilities side of Balance Sheet

• Credit side of Trial Balance

Aarav, an accountant, is preparing the financial statements for a small business. He realizes that some transactions were not recorded during the accounting period. To ensure the financial statements are accurate, he needs to make adjustments. Adjustment entries are made for:

• Omissions

• Errors

• Accruals and prepayments

• None of these

In a small business, Myra is preparing the financial statements for the year. She notices that the closing stock is included in the Trial Balance. She wonders where this closing stock will be reflected in the financial statements.

• In Trading Account only

• In Balance Sheet only

• In both Trading and Balance Sheet

• Nowhere