Trading and Loss Profit Quiz: Part 1

Q.1 Which of the following will not affect the gross profit a) Cost of transporting goods to customers b) Purchase Returns c) Import Duty d) Sales Returns Q.2 Gross Profit is incurred when a) net sales are equal to net purchase b) sales are less than cost of goods sold c) net purchases is more than net sales d) sales exceed cost of sales Q.3 Sales = 120000, Cost of goods sold=85000, Calculate the Gross profit a) 35000 b) 205000 c) 70000 d) 1200000 Q.4 Sales=30000; Carriage Inwards=1000; Purchases=20000;Purchase Returns=1000 a) 11000 b) 12000 c) 13000 d) 10000 Q.5 Why is Trading Account made a) to find total cash in the business b) to find the Gross Profit c) to find the total assets and liabilities of the business d) to find the net profit Q.6 Which of the following expense is added to the Cost of Purchase a) Factory Wages b) Carriage Inwards c) Factory rent d) Carriage Outwards