Final accounts – Test 3

Which of the following principle/s must be kept in mind while preparing Trading and Profit & Loss Account?

Which of the following accounts will have a debit balance?

Which of the following business entity will not prepare Trading Account?

Which pair of accounts stated below will have balance on opposite sides?

Generally __________ appears in trading account and ______ appears in Profit & Loss Account.

A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Account respectively as:-

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

The capital of a sole trader would change as a result of:-

The ________ is defined as “a Statement which sets out the assets and liabilities of a business and which serves to ascertain the financial position of the same on any particular date.”

A decrease in the provision for doubtful debts would result in:-

The totals of the two sides of the balance sheet must agree because of the following equation.

Capital is the difference between-

_________ is prepared for ascertaining the cost of goods produced or cost of production.

Which of the following organization will not prepare Trading A/c but prepares Profit & Loss A/c?

Balance of manufacturing account i.e. cost of production is transferred to-

Which of the following statement is correct?

In case of final accounts of manufacturing concerns closing stock of finished goods appears in _____&_____

Which of the following is objective of preparation of balance sheet?

If the rate of gross profit increases in the current financial year, the same may happen due to which of the following reason?

The arrangement of assets and liabilities in accordance with a particular order is known as ______

Which of the following statement is true?

Which of the following approach can be used for marshaling of balance sheet?

Another name for the balance sheet is-

In_____, approach assets which are to be used for long term in the business and are not meant to be sold are presented first and assets which are most liquid such as cash in hand, are presented at the bottom.

Which of the following is an asset account?