Final Accounts Test 22

Result

Final Accounts Test 22

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Weekly Quiz Competition

Question 1
1 / -0

_______ is the difference between the selling price and the cost price of the goods sold.

A
Gross profit

B
Gross loss

C
(A) or (B)

D
(A) and (B)

Solution

Trading Account is prepared to know the Gross Profit or Gross Loss during the accounting period. The account is based on matching the selling price of goods and services with the cost of goods sold or services rendered. If cost is greater than selling price, then it is gross loss. If selling price is more than cost of goods sold than it is gross profit.
Question 2
1 / -0

Carriage outwards appears in ______, whereas carriage inwards appears in ________.

A
Trading A/c, Profit and Loss A/c

B
Profit and Loss A/c, Trading A/c

C
Trading A/c, Balance Sheet

D
Balance Sheet, Profit and Loss A/c

Solution

Carriage outward is the seller's cost of delivering goods to the buyer. It is related to sale and carriage inward is the transportation cost associated with purchase of goods. Trading account includes all the expenses related to production. All the indirect expenses comes in profit and loss account. That's why carriage outward appears in profit and loss account and carriage inward appears in trading account.
Question 3
1 / -0

Excess of expenditure over income is also known as _____.

A
Profit

B
Surplus

C
Loss

D
Deficit
Question 4
1 / -0

Gross profit or gross loss revealed by trading account is transferred to:

A
Balance Sheet

B
Profit and Loss Account

C
Manufacturing Account

D
Profit and Loss Appropriation Account

Solution

Profit and loss account calculate net profit or net loss. It takes into account operating and non operating expenses and revenues, during an accounting period. It is prepared after the trading account. The balance of trading account i.e. gross profit or gross loss is transferred to this account which acts as initial point of this account.
Question 5
1 / -0

The net profit or loss is transferred to______________.

A
Drawing Account

B
Capital Account

C
Suspense Account

D
None of the above
Question 6
1 / -0

Depreciation appearing in the trial balance should be:

A
Debited to P&L A/c

B
Shown in liability in balance sheet

C
Reduced from related asset in Balance Sheet

D
Both (A) and (C) of the above
Question 7
1 / -0

Revenue expenditure are balanced and is transferred to ______________.

A
Liability side in balance sheet

B
Credit Side to profit & loss account

C
Debit side to Profit and loss account

D
Asset side in balance sheet

Solution

During the normal course of business, any expenditure incurred of which benefit is received during the same accounting period is called revenue expenditure. These expenses help a business sustain its operations and may not result in an increase in revenue.
The amount transferred to trading and P&L account should only be to an extent to which goods or services have been consumed during the accounting period and should transfer to the debit side of trading or Profit and Loss A/c account.
Question 8
1 / -0

If capital losses are negligible, they are_______ of the year in which they occur.

A
Debited to profit & loss account

B
Shown in balance sheet on the assets side

C
Shown in balance sheet on the liability side

D
None of the above

Solution

Capital losses generally arise only when an asset is disposed of. However a negligible value claim will give rise to an allowable loss.
If capital losses are negligible they are debited to profit and loss account in the year in which they arise. These losses are not carried forward to be written off in coming years.
Question 9
1 / -0

Capital losses are:

A
Debited to profit & loss account.

B
shown in the balance sheet on the assets side.

C
shown in the balance sheet on the liability side.

D
None of the above.

Solution

Capital loss is a loss suffered by a business on the sale of a fixed asset or it is incurred on raising capital of a joint stock company. This is not a recurring loss or is not made in the ordinary course of the business. Capital loss is shown in the asset side as a fictitious asset which is gradually written off out of profits every year.
Question 10
1 / -0

In order to prepare the final accounts all the ________ accounts are transferred to Trading and Profit and Loss account.

A
Personal

B
Nominal and Real

C
Nominal

D
Real

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Re-Attempt Weekly Quiz Competition

Final Accounts Test 22

Result

Final Accounts Test 22

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Rank

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SHARING IS CARING

Question 1

Gross profit

Gross loss

(A) or (B)

(A) and (B)

Solution

Question 2

Trading A/c, Profit and Loss A/c

Profit and Loss A/c, Trading A/c

Trading A/c, Balance Sheet

Balance Sheet, Profit and Loss A/c

Solution

Question 3

Profit

Surplus

Loss

Deficit

Question 4

Balance Sheet

Profit and Loss Account

Manufacturing Account

Profit and Loss Appropriation Account

Solution

Question 5

Drawing Account

Capital Account

Suspense Account

None of the above

Question 6

Debited to P&L A/c

Shown in liability in balance sheet

Reduced from related asset in Balance Sheet

Both (A) and (C) of the above

Question 7

Liability side in balance sheet

Credit Side to profit & loss account

Debit side to Profit and loss account

Asset side in balance sheet

Solution

Question 8

Debited to profit & loss account

Shown in balance sheet on the assets side

Shown in balance sheet on the liability side

None of the above

Solution

Question 9

Debited to profit & loss account.

shown in the balance sheet on the assets side.

shown in the balance sheet on the liability side.

None of the above.

Solution

Question 10

Personal

Nominal and Real

Nominal

Real

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