Financial Statements Test

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Financial Statements Test - 2

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Weekly Quiz Competition

Question 1
1 / -0

The item discount received will appear on the

A
Credit side of Balance sheet

B
Credit side of Profit and loss account

C
Debit side of Balance sheet

D
Debit side of Profit and loss account

Solution

since discount received is profit for the business so it is credited in profit and loss account.
Question 2
1 / -0

A gross profit is transferred to the __________side of the profit and loss account.

A
Credit

B
Current

C
Asset

D
Debit

Solution

profit and loss account is nominal account so all profit and gains are credited
Question 3
1 / -0

To Know the profitability and financial position of a business at the end of the year _____________ are prepared.

A
Balance sheet

B
Audit report

C
Financial statements

D
Profit and loss account

Solution

financial statements include both profit and loss and balance sheet.For profit we will check profit and loss account and for financial position we will see the balance sheet.
Question 4
1 / -0

Which of the following is another name used to describe EBIT (earning before interest and taxes)?

A
Net Profit

B
Gross Profit

C
Operating profit

D
None

Solution

It includes gross profit- operating expenses = operating profit or EBIT.
Question 5
1 / -0

All direct expenses are ___ to Trading account and all indirect expenses are __________ to Profit and Loss account.

A
Debited, Debited

B
Credited , Debited

C
Debited, Credited

D
Credited , Credited

Solution

trading and profit and loss account is nominal in nature so all the expenses are debited. the direct expenses are debited in trading account and the indirect expenses are debited to profit and loss account.
Question 6
1 / -0

Calculation of Cost of goods sold

A
Cost of Goods Sold = Net Sales - Gross Profit

B
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses - Closing Stock

C
Both

D
None

Solution

cost of goods sold can be calculated by both the methods.
Question 7
1 / -0

Accounting treatment of Deferred Revenue Expenditure is based on which principle

A
Cost concept

B
Going concern concept

C
Money Measurement

D
Matching Principle

Solution

deferred revenue expenditure is if of revenue in nature then its treatment is done according to matching principle i.e expenses of current year will be matched with the income of current year.
Question 8
1 / -0

Which of the following is Revenue Receipt

A
Amount received which is not is the normal and ordinary course of business like sale of fixed assets.

B
Loan raised.

C
Fresh capital introduced or additional capital introduced

D
Income from non-operating business activities

Solution

revenue receipts are those which do not affect the asset and liabilities. since income from non operating business activities do not affect asset and liabilities it is revenue receipt.

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Re-Attempt Weekly Quiz Competition

Financial Statements Test - 2

Result

Financial Statements Test - 2

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SHARING IS CARING

Question 1

Credit side of Balance sheet

Credit side of Profit and loss account

Debit side of Balance sheet

Debit side of Profit and loss account

Solution

Question 2

Credit

Current

Asset

Debit

Solution

Question 3

Balance sheet

Audit report

Financial statements

Profit and loss account

Solution

Question 4

Net Profit

Gross Profit

Operating profit

None

Solution

Question 5

Debited, Debited

Credited , Debited

Debited, Credited

Credited , Credited

Solution

Question 6

Cost of Goods Sold = Net Sales - Gross Profit

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses - Closing Stock

Both

None

Solution

Question 7

Cost concept

Going concern concept

Money Measurement

Matching Principle

Solution

Question 8

Amount received which is not is the normal and ordinary course of business like sale of fixed assets.

Loan raised.

Fresh capital introduced or additional capital introduced

Income from non-operating business activities

Solution

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