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WorksheetsFinancial Statements of a Sole Trade
Total questions: 25
Worksheet time: 5mins
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 statement of financial position is:
A statement listing the business’s income and expenditure for the year
A statement listing what the business owes at a particular point of time
A statement of money received and paid out during the year
A statement listing the business’s total assets, liabilities and capital at a particular point of time
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
On debit side of Trading Account we record:
Indirect Expense
Direct Expense
Both of these
None of these
Which are indirect expense of the followings?
Rent Income
Insurance premium
Wages
All of these
On credit side of Profit and Loss Account we record:
Direct Income
Direct Expenses
Indirect Expenses
Indirect Income
Discount received is an example of:
General Income
Net Income
Direct Income
Indirect income
Profit and Loss Account is prepared:
Daily.
On any date.
For a certain period
All of these
Carriage Outwards is an example of:
Direct Income
Indirect Income
Indirect Expenses
Direct Expenses
Balance Sheet is a statement of:
Liabilities
Capital
Assets
All of these
Balance Sheet discloses the financial position of a business:
For a given period
On a particular point of time
On a certain fixed date
All of these
Properties, things and receivables having certain value owned by business are called:
Assets
Liabilities
Incomes.
None of these
Any physical thing that has monetary value is:
Tangible assets
Goodwill
Fictitious asset
Intangible asset
Business is said to be in a profit when:
Expenditure exceeds income
Income exceeds expenditure
Income exceeds liability
Assets exceed expenditure
Which of the options is not an intangible asset?
Land
Patents
Goodwill
Franchise rights
Which of the options is an example of business liability?
Cash
Creditors
Building
Land
The unfavourable balance of Profit and Loss account should be:
Subtracted from current assets
Subtracted from capital
Added in liabilities
Subtracted from liabilities
Which one of the following tangible fixed assets would not normally be depreciated?
Buildings
Machinery
Land
Equipment
If the Gross profit is Rs. 5,000 and the net profit is 25% of the Gross profit. The expenses must be:
₹3,750
₹1,250
₹4,150
₹6,250
Subtracting all expenses from revenues yields?
Net profit/Loss
Carrying value
Long-term assets
Net liabilities
Which of the following is true about financial statements?
A) Financial statement gives a summary of accounts.
B) Financial statements can be stated as recorded facts.
Only A
Only B
Both A and B
None of the above
