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Income Statement

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Income Statement is prepared at

a)

Middle of the year

b)

End of the year

c)

Every 3 months

d)

Every 6 months

2.

What is recorded in the Income Statement

a)

Expense & Income

b)

Asset & Liability

c)

All 5

d)

Drawings

3.

When you debit Income Statement it

a)

increases profit

b)

decreases profit

c)

profit remains unchanged

d)

None of these

4.

In the Income St Expenses and Liability are

a)

Debited

b)

Credited

c)

Both

5.

Prepaid expenses and income are

a)

subtracted

b)

added

c)

multiplied

d)

divided

6.

Accrued expense and income is

a)

added

b)

subtracted

c)

multiplied

d)

divided

7.

Recording of income in Income Statement is

a)

an opening entry

b)

a closing entry

c)

an adjustment entry

d)

a rectification entry

8.

In the Income Statement a service business earns

a)

Only Gross Profit

b)

Gross and Net Profit

c)

Only Net Profit

d)

Divisible Profit

9.

In the Income Statement a trader will earn

a)

Only Gross Profit

b)

Gross profit & Net profit

c)

Only Net Profit

d)

Divisible Profit

10.

Gross Profit=

a)

Sales - Cost

b)

Sales - Cost of sales

c)

Sales - Expense

d)

Sales - Cost of goods sold

11.

Net Profit is calculated by

a)

Gross Profit - Expense

b)

Gross profit + Income

c)

Gross Profit - Drawings

d)

Gross Profit + Income - Expense

12.

What are Other Income recorded in Profit & Loss section

a)

Commission received

b)

Profit on sale of Non-current assets

c)

Discount received

d)

All 3

13.

Which combination is correct

a)

Gross Profit - Trading A/C

Net Profit -

Profit & Loss A/C

b)

GrossProfit - Profit & Loss A/C

c)

Net Profit - Trading A/C

14.

Income Statement written as ...........................

a)

......... as on.......

b)

...... as at .........

c)

..... for the year ended ......

d)

....... dated .........

15.

Entry for providing Depreciation

a)

Depreciation Dr Income St Cr

b)

Depreciation Dr Provision for depreciation Cr

c)

Income St Dr Depreciation Cr

d)

Income St Dr

Provision for depreciation Cr