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Engaging Starter Trading Account

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

Expenses related to bringing goods to the store or warehouse are called ________.

a)

Direct Expenses

b)

Indirect Expenses

c)

Assets

d)

Capital

2.

Which type of expenses are recorded in the Trading Account?

a)

Indirect Expenses

b)

Direct Expenses

c)

Operating Expenses

d)

Capital Expenses

3.

Carriage Inward is recorded in which account?

a)

Profit & Loss Account

b)

Trading Account

c)

Balance Sheet

d)

Capital Account

4.

Net Purchases are calculated as:

a)

Purchases + Purchase Returns

b)

Purchases − Purchase Returns

c)

Sales − Sales Returns

d)

Purchases + Sales

5.

Net Sales are calculated as:

a)

Sales + Sales Returns

b)

Sales − Sales Returns

c)

Sales + Purchases

d)

Purchases − Sales

6.

Carriage Outward is treated as a(n) ______ expense.

a)

Direct

b)

Indirect

c)

Manufacturing

d)

Capital

7.

Which of the following items appears in the Profit and Loss Account?

a)

Opening Stock

b)

Carriage Inward

c)

Rent and Salaries

d)

Closing Stock

8.

Net Profit or Net Loss is determined from which statement?

a)

Profit & Loss Account

b)

Trading Account

c)

Balance Sheet

d)

Cash Book

9.

Rent of office and salaries of admin staff are examples of ________.

a)

Direct Expenses

b)

Indirect Expenses

c)

Trading Expenses

d)

Capital

10.

Custom Duty paid on imported goods is a ______ expense.

a)

Office

b)

Selling

c)

Direct

d)

Indirect

11.

In the Trading Account, “Clearing Charges” will be recorded on the ______ side.

a)

Credit

b)

Debit

c)

Both sides

d)

Not recorded

12.

Gross Profit is determined from which statement?

a)

Balance Sheet

b)

Profit & Loss Account

c)

Trading Account

d)

Trial Balance

13.

Which statement shows the Assets, Liabilities, and Capital of a business?

a)

Profit & Loss Account

b)

Balance Sheet

c)

Trading Account

d)

Trial Balance