Question

17.       Which financial statement displays the revenues and expenses of a company for a period of time?

1. Cash Flow Statement

2. Statement of Profit or Loss

3. Statement of Financial Position

4. Statement of Shareholder’s Equity

18.       Accounting is the information system that___________

1. Measures business activity

2. Communicate the results to decision makers

3. Processes data into reports

4. All of the above   

                                   

19.      Which of the following should not be called ‘Sales’?

1. Office fixtures sold

2. Goods sold on credit

3. Goods sold for cash

4. Sale of item previously included in ‘Purchases’

20.      The resources owned by a business are called ____________:

           

1. Assets

2. Liabilities

3. Owner’s equity

4. The accounting equation

21.      The total of the Purchases Journal is transferred to the:

           

1. Credit side of the Purchases Book

2. Credit side of the Purchases Account

3. Debit side of the Purchases Account

4. Debit side of the Purchases Day Book

22.       Bank overdraft is:

1. A current asset

2. A current liability

3. A non-current asset

4. A non-current liability

23.      Net profit is calculated in the:

1. Trial balance

2. Trading account

3. Profit and loss account

4. Statement of financial position

24.       Gross profit is:

1. Sales less purchases

            b.   Net profit less expenses of the period

            c.   Cost of goods sold + opening inventory

            d.   Excess of sales over cost of goods sold

                                   

Answer 1

17)

Profit & Loss Account or Statement of Profit & Loss displays Revenues and Expenses.

Therefore, Statement of Profit or Loss

18)

Accounting is the system of recording all the transactions and making reports to analyze hiw business is running and to take important decisions.

Therefore, All of the Above.

19)

Sales includes any type of sale of GOODS in which the entity does its business. Sale of fixtures is not Sales. It is sale if asset.

Therefore, Office Fixtures Sold.

20)

Resources that business own are its assets.

Therefore, Assets.

Note: As per Guidelines, we are supposed to answer ONLY 4 SUB QUESTIONS.