1- A man buys Rs. 40,000 worth of goods and sells them for Rs. 50,000. His gross profit is:
A). Rs. 10,000✔️
B). Rs. 20,000
C). Rs. 30,000
D). Rs. 40,000
2- If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit. The expenses must be:
A). Rs. 1250
B). Rs. 3750✔️
C). Rs. 4150
D). Rs. 6250
3- An operating statement is similar to a:
A). Trial Balance
B). Balance sheet
C). Trading profit and Loss Account✔️
D). Bank reconciliation statement
4- Net. Sales. Equals, sales minus:
A). Return outwards
B). Return inwards✔️
C). Cost of goods sold
D). Carriage on sales
5- All duties on goods purchased should be debited to:
A). Profit and Loss Account
B). Balance sheet
C). Position statement
D). Trading account✔️
6-All the direct expenses are charged to:
A). Balance sheet
B). Profit and Loss Account
C). Trading Account✔️
D). None of these
7-An amount paid to a person for exploiting rights possessed by him, is called as:
A). Excise duty
B). Octroi duty
C). Royalty✔️
D). Wages
8-The nominal accounts are transferred to the:
A). Profit and Loss Account✔️
B). Balance sheet
C). Position statement
D). Statement of financial condition
9- The real or personal accounts goes to the:
A). Profit and Loss Account
B). Trading Account
C). Income Statement
D). Balance sheet✔️
10- The dues imposed on ships and their cargoes when they are unloaded on the part are called:
A). Excise duty
B). Octroi duty
C). Dock charges✔️
D). None of the above
11- Dock charges is a:
A). Indirect expense
B). Direct expense✔️
C). Direct income
D). None of the above
12- All the direct expenses debited to the:
A). Profit and Loss Account
B). Balance sheet
C). Trading Account✔️
D). Income statement
13- All the indirect expenses debited to the:
A). Profit and Loss Account✔️
B). Trading Account
C). Balance sheet
D). None of the above
14- The excess of the net income from sales over the cost of goods sold is called:
A). Cost of goods sold
B). Gross profit✔️
C). Net profit
D). Operating profit
15- The excess of gross profit on sales over total operating, expenses is called:
A). Cost of goods sold
B). Gross profit
C). Net profit✔️
D). None of the above
16-The account which is prepared for determining gross profit or gross loss of a business concern, is called:
A). Balance account
B). Trading Account✔️
C). Bank statement
D). Cash statement
17- The account which is prepared for determining net- profit or net- loss:
A). Personal Account
B). Real Account
C). Profit and Loss Account✔️
D). Trading Account
18- The order in which assets and liabilities are stated on the balance sheet is termed as:
A). Liquidity
B). Realizability
C). Marshalling✔️
D). None of the above
19- All the things and properties under the ownership of the business is called:
A). Liabilities
B). Assets✔️
C). Incomes
D). Capital
20- Our dues to others or anything against which we are to pay money or render service, is known as:
A). Owner’s equity
B). Assets
C). Liability✔️
D). Expenses
21- Balance sheet reveals the financial position of a concern on a particular date at a point of time,so it is also called:
A). Income Statement
B). Accounting statement
C). Balance statement
D). Position statement✔️
22- Assets which have some market value are called:
A). Real Assets✔️
B). Current Assets
C). Liquid Assets
D). None of the above
23- Assets which have long life and which are bought for use for a long period of time are called:
A). Current Assets
B). Fixed Assets✔️
C). Wasting Assets
D). None of the above
24- Assets which have physical existence and which can be seen, touched and felt are called:
A). Current Assets
B). Intangible Assets
C). Tangible Assets✔️
D). Fictitious Assets
25- Assets which have no physical existence and which cannot be seen, touched are:
A). Fixed Assets
B). Tangible Assets
C). Fictitious Assets
D). Intangible Assets✔️
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