WorksheetsPrinciples of Accounts
Total questions: 10
Worksheet time: 5mins
Gross profit is calculated in the:
profit and loss account
balance sheet
trading account
trial balance
Net profit is:
sales less cost of goods sold
gross profit add expenses of the period
capital plus all expenses
gross profit less expenses of the period
Carriage inwards is charged to the trading account because:
it is not a balance sheet item
it is not part of our motor expenses
returns inwards also goes in the trading account
it is part of the cost of buying goods
Given figures showing: sales of $28,500, opening stock of $4,690, closing stock of $7, 240, carriage inwards of $570 and purchases of $21, 350, the cost of goods sold figure is:
$19,830
$19,380
$18,810
none of the above
In the trading account, the returns inwards should be:
added to cost of goods sold
deducted from purchases
deducted from sales
added to sales
Cost of goods sold is calculated by...
Opening stock + purchases - closing stock
Opening stock + purchases + closing stock
Adding up all of the stock bought during the year
Opening stock - closing stock
What is the purpose of an income statement?
calculate the bank balance
calculate net assets
calculate sales
calculate net profit
Which account should not be found in an income statement?
Sales
Purchases
Debtors
Carriage inwards
All businesses are started with the aim of making ...
Capital
sound investments on the stock market
A profit
their owners popular
