Final Accounts Test 20

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Final Accounts Test 20

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Weekly Quiz Competition

Question 1
1 / -0

Basic principle to be followed while preparing trading and profit & loss account are ___________.

A
expenses for the full trading period should be included

B
revenue received for the whole period be included

C
expenditure which is for other period be included

D
Both a & b
Question 2
1 / -0

Gross profit less expenses is known as _________.

A
Net profit

B
Net turnover

C
Cost of goods sold

D
Total drawings

Solution

When all the indirect expenses related to the business are deducted from the Gross Profit earned, it results in Net Profit/Net Loss. Net profit is the amount of money a business earns after deducting all operating, interest, and tax expenses over a given period of time.
Question 3
1 / -0

Polyster Ltd made a profit for the year ended $$31$$ march $$2012$$ of $$130,000$$. During that year the company had paid preference dividends on $$100,000$$ ($$5\%$$ preference shares). In addition, an ordinary dividend of $$4$$ Rs per share was paid on $$200,000$$ ordinary shares. What was the retained profit for the year ended $$31$$ March $$2012$$?

A
Rs.$$22,000$$

B
Rs.$$17,000$$

C
Rs.$$25,000$$

D
Rs.$$30,000$$
Question 4
1 / -0

Cost of goods sold - 60,000,
Sales for the period- 95,000,
Office Administration Expenses - 20,000.
Find the Gross Profit.

A
20,000

B
15,000

C
35,000

D
1,75,000

Solution

Gross Profit is the profit that the company makes after deducting the costs associated with the operations from the sale proceeds of the business operations.
It does not take into consideration any of the non-operational expenses i.e., office expenses, administration expenses and other indirect expenses.
Therefore, to find gross profit, administration expenses will not be deducted.
Gross profit = Sales - Cost of Goods Sold
= 95,000 - 60,000 = 35,000
Question 5
1 / -0

Fire insurance premium paid on $$1-10-2014$$ for the year ended on $$30-9-2015$$ was Rs. $$2,400$$ and fire insurance premium paid on $$1-10-2015$$ for the year ended $$30-9-2016$$ was Rs. $$3,200$$. Fire insurance premium paid in Profit & Loss A/c for the year ended $$31-3-2016$$ would be.

A
Rs. $$2,400$$

B
Rs. $$3,200$$

C
Rs. $$2,800$$

D
Rs. $$3,000$$

Solution
Question 6
1 / -0

Particulars Rs.
Sales $$15,000$$
Opening Stock $$6,000$$
Purchases $$10,000$$
Closing Stock ?
Cost of goods sold $$9,000$$
Gross Profit ?
Selling Expenses $$4,000$$
Net Profit ?
Determine net profit for the year ended?

A
Rs. $$6,000$$

B
Rs. $$5,000$$

C
Rs. $$2,000$$

D
Rs. $$7,000$$
Question 7
1 / -0

In an Income statement, gross profit is always equal to _________.

A
Sales-expenses

B
Incomes-expenses

C
Sales-cost of goods sold

D
Sales-selling costs

Solution

Gross profit is the profit a business makes after subtracting all the costs that are related to manufacturing and selling its products or services. We calculate the gross profit by deducting the cost of goods sold (COGS) from the total sales.
Question 8
1 / -0

Which statement is true?

A
Gross profit - gross loss = Net profit

B
Gross profit - net loss = net profit

C
Net profit - net loss = net profit

D
Total revenue - total expenses = net profit
Question 9
1 / -0

When taking final stock for preparation of trading account then ______ should not be included

A
Purchases of goods made but not received.

B
Goods sold but not yet delivered

C
Both a & b

D
None of the above
Question 10
1 / -0

Which of these items would be accounted for as an revenue expenditure?

A
Repayment of a bank loan.

B
Dividends to stockholders.

C
The purchase of land.

D
Payment of the current period's rent.

Solution

Revenue expenditures are short-term expenses used in the current period or typically within one year. Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses.
Repayment of bank loan: Capital Expenditure
Dividend to shareholders: Distribution of profits
Purchase of land: Capital Expenditure
Payment of current period's rent: Revenue expenditure
Therefore, D is the correct option.

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Re-Attempt Weekly Quiz Competition

Particulars	Rs.
Sales	$$15,000$$
Opening Stock	$$6,000$$
Purchases	$$10,000$$
Closing Stock	?
Cost of goods sold	$$9,000$$
Gross Profit	?
Selling Expenses	$$4,000$$
Net Profit	?

Final Accounts Test 20

Result

Final Accounts Test 20

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Rank

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SHARING IS CARING

Question 1

expenses for the full trading period should be included

revenue received for the whole period be included

expenditure which is for other period be included

Both a & b

Question 2

Net profit

Net turnover

Cost of goods sold

Total drawings

Solution

Question 3

Rs.$$22,000$$

Rs.$$17,000$$

Rs.$$25,000$$

Rs.$$30,000$$

Question 4

20,000

15,000

35,000

1,75,000

Solution

Question 5

Rs. $$2,400$$

Rs. $$3,200$$

Rs. $$2,800$$

Rs. $$3,000$$

Solution

Question 6

Rs. $$6,000$$

Rs. $$5,000$$

Rs. $$2,000$$

Rs. $$7,000$$

Question 7

Sales-expenses

Incomes-expenses

Sales-cost of goods sold

Sales-selling costs

Solution

Question 8

Gross profit - gross loss = Net profit

Gross profit - net loss = net profit

Net profit - net loss = net profit

Total revenue - total expenses = net profit

Question 9

Purchases of goods made but not received.

Goods sold but not yet delivered

Both a & b

None of the above

Question 10

Repayment of a bank loan.

Dividends to stockholders.

The purchase of land.

Payment of the current period's rent.

Solution

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