Which of the following should not be included in the sales on the Profit and Loss Account?
A Goods sold for cash
B Goods sold on credit
C Goods included in purchases
D Office fixtures sold
Question 7
Given the following, what is the amount of Capital? Assets: Premises £20,000; Stock £8,500; Cash £100. Liabilities: Creditors £3,000; Loan from A Adams £4,000
A £32400
B £21400
C £21100
D £21600
Question 8
Which of the following is correct?
A Profit reduces capital
B Profit increases capital
C Profit has no effect on capital
D Capital can only come from profit
Question 9
Net profit is
A The excess of incomes over expenses
B The increase in your bank balance
C Sales less purchases
D Gross profit plus expenses
Question 10
Net Profit is calculated in
A The Balance Sheet
B The Trial Balance
C The Profit and Loss Account
D The Trading Account
Question 11
To find the value of closing stock at the end of a year we
A Hold a stock take and multiply the quantity by sales prices
B Deduct opening stock from cost of sales
C Check in the Bank Account
D Hold a stock take and multiply the quantity by cost prices
Question 12
Which of the following best describes a Balance Sheet?
A A list of assets
B A list of balances
C A statement of incomes and expenses
D An account proving the books balance
Question 13
Which of these best describes fixed assets?
A Expensive items we have bought
B Things we use in the business
C Items that will not wear out quickly
D Items of long life not bought specifically for resale
Question 14
The cost of delivery inwards is normally added onto purchases because
A Delivery outwards goes in the Profit and Loss Account
B It is an expense associated with buying goods
C It is associated with motor expenses
D It should appear in the Balance Sheet
Question 15
Depreciation is
A The salvage value of a fixed asset
B The amount spent on replacing fixed assets
C The part of the cost of a fixed asset that has been consumed during a period
D The amount it costs to buy a fixed asset
Question 16
A company bought a fixed asset for £3200. It was depreciated using the reducing balance method ...