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Income Statement & Balance Sheet

Quiz by Jenna La Croix

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30 questions
Show answers
  • Q1
    What MAIN need of an owner is satisfied by the preparation of financial statements?
    helping to decide whether to extend credit facilities
    helping to assess whether to negotiate for increased wages for employees
    getting information included in the Gross Domestic Product (GDP)
    determining if the business is profitable
    60s
  • Q2
    What category of user requires information about the business' ability to repay its short-term obligations?
    Debtors
    Government
    Creditors
    Owners
    60s
  • Q3
    Which financial statement of a business shows the business' financial performance?
    Balance Sheet
    Appropriation a/c
    Cash Flow Statement
    Income Statement
    60s
  • Q4
    Which financial statement of a business shows the business' financial position?
    Balance Sheet
    Cash Flow Statement
    Income Statement
    Appropriation a/c
    60s
  • Q5
    Which of the following represents Opening Inventory added to Net Purchases?
    Gross profit
    Total expenses
    Cost of goods sold
    Cost of goods available for sale
    60s
  • Q6
    What is the name of the figure from which closing stock is subtracted?
    Cost of goods available for sale
    Cost of goods sold
    Opening Inventory
    Net Purchases
    60s
  • Q7
    Which of the following represents the figure obtained when Closing Stock is deducted in the Income Statement?
    Gross profit
    Net sales
    Cost of sales
    Net income
    60s
  • Q8
    Another name for transportation on purchases is
    Returns Inwards
    Carriage Inwards
    Carriage Outwards
    Returns Outwards
    60s
  • Q9
    Returns Inwards is
    added to Purchases
    added to Sales
    subtracted from Purchases
    subtracted from Sales
    60s
  • Q10
    Returns Outwards is
    subtracted from Sales
    added to Sales
    added to Purchases
    subtracted from Purchases
    60s
  • Q11
    Demerara Supermarket provides a delivery service to customers. The supermarket pays the drivers for delivering the groceries to the customers. What is the cost to Demerara Supermarket called?
    Returns Outwards
    Carriage Outwards
    Returns Inwards
    Carriage Inwards
    60s
  • Q12
    Discount allowed is listed as
    revenue in the Income Statement
    a current liability in the Balance Sheet
    expense in the Income Statement
    a current asset in the Balance Sheet
    60s
  • Q13
    Which equation represents Gross Profit?
    Net Sales - Cost of sales
    Net Sales - Net Purchases
    Net Sales - Cost of goods available for sale
    Net Purchases - Net Sales
    60s
  • Q14
    Which equation represents Net Profit?
    Net Sales - Cost of goods sold
    Net Sales - Gross Profit
    Gross Profit - Total expenses
    Gross Profit - Cost of goods sold
    60s
  • Q15
    Motor vehicles are listed as a
    Non-current asset in the Balance Sheet
    Non-current Liability in the Balance Sheet
    Current Liability in the Balance Sheet
    Current Asset in the Balance Sheet
    60s

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