1
In the Balance Sheet, capital is calculated as:
A) Assets + Liabilities
B) Assets - Liabilities
C) Liabilities + Drawings
D) Net profit + Expenses
B
The Trading Account is typically prepared for:
A) A specific period (e.g., monthly, quarterly, yearly)
B) Each individual transaction
C) Only at the end of the fiscal year
D) Only when a business is closing
A
State one limitation of accounting Standared
Subjected to changes as per business environment conditions
Which of the following would appear in the appropriation section of a Profit and Loss Account?
A) Wages
B) Gross profit
C) Interest on capital
D) Sales returns
C
The closing balance of the Profit and Loss Account represents:
A) Net profit or net loss
B) Gross profit or gross loss
C) Cash in hand
D) Capital account balance
NET PROFIT AND LOSS
If the capital of a business is 120000 and outside liabilities are 20000.calculate total assets of the business
140000
The balance of the Capital Account is affected by:
A) Drawings and profit/loss
B) Sales and purchases
C) Expenses and income
D) Assets and liabilities
A
Net profit in the Profit and Loss Account is calculated as:
A) Gross profit + Operating expenses
B) Gross profit - Indirect expenses
C) Revenue - Direct expenses
D) Gross profit + Indirect income - Indirect expenses
D
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AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUCTANTS