Trading and Profit and Loss A/c
Another name for the Trading and Profit and Loss Account
What is an Income Statement
What is a Statement of Comprehensive Income
The heading of a balance is dated
What is as at
The purpose of ratios is to
What is to allow users of financial statements to compare results of the companies
Which of the following is not a liability
-Prepaid expenses
-Overdraft
-Loan
-Mortgage
What is prepaid expenses
Used to record the balances of individual customer account
What is a sales ledger
The formula for gross profit
What is Total Revenue - Cost of Goods Sold
What is Revenue - Cost of Goods Sold
The balance sheet is arranged by
What is order of permanence or liquidity
The three main types of ratios are
What is profitability, liquidity and efficiency ratios
The current assets are
What are things the business owns and is expected to use within a 12 month period
A lists all the account names and their balances in the ledgers as at a specific date.
What is a Trial Balance
The net profit represents
What is the overall profit of the business
Working capital is calculated as
What is current assets minus current liabilities
The best ratio to indicate liquidity
What is the acid test ratio
What is the quick ratio
The step in the accounting cycle after source documents is
What are journals
A reduction in the price of goods below the amount at which those goods would normally be sold
What is a discount
Where does other income fall on the Trading and Profit and loss account
What is after the gross profit
The financed by section can consist of
What is capital, net profit/loss, drawings
The inventory turnover ratio represents
What is how often a firm buys/ replenishes stock
The basis of accounting made up of
What are principles, conventions and concepts
A common code of behavior considered correct for a specific group, association or profession.
What are ethics
The gross profit represents
What is the profits from the initial sale of items
Another name for the balance sheet is
What is the Statement of Financial Position
The formula for Return on capital employed
What is (Net Profit/ Average Capital Employed) x 100
Trevor bought goods on credit from Calvin worth $20,000 on the 14th May 2021. He received a trade discount of 10%.
If Trevor pays Calvin within 16 days, he gets an additional discount of 2%.
Trevor paid via cheque on the 1st June 2021 how much did he write a cheque for?
What is $18,000
The business is reported on as if it is able to carry on operations into the foreseeable future.
What is the going concern concept