Question
Urgently needed please K_ Which of the following are not part of the income statement (profit and loss account)? ASales BGross profit CDebtors DRent (2
Urgently needed please
K_ Which of the following are not part of the income statement (profit and loss account)?
ASales
BGross profit
CDebtors
DRent
(2 marks)
2.2Which of the following are not part of the balance sheet?
APrepayments
BShort-term loans
CInterest
DCreditors
(2 marks)
2.3Which of the following is not part of the statement of movements on capital?
ACapital at the start of the period
BNet profit earned in the period
CFixed assets
DCapital at the end of the period
(2 marks)
2.4Which does not form part of cost of goods?
AClosing stock
BSales
COpening stock
DPurchases
(2 marks)
2.5 Sales 5,000, Purchases 3,000, Closing stock 2,000, Opening stock 400. Calculate gross profit/(loss)?
A3,600 Profit
B400 Loss
C10,400 Profit
D4,400 Loss
(2 marks)
2.6If the gross profit is 4,300, calculate net profit after the following transactions:
Rent 1,000
Interest 300
Rent received 200
A3,000 profit
B3,200 profit
C5,600 profit
D5,800 profit
(2 marks)
2.7 An increase in stock of 500, a decrease in the bank balance of 800 and an increase in creditors of 2,400 results in
Aa decrease in working capital of 2,700
Ban increase in working capital of 2,700
Ca decrease in working capital of 2,100
Dan increase in working capital of 2,100
(2 marks) 2.8The accounting equation at the start of the month was
Assets 14,000 less liabilities 6,250. During the month the following transactions took place: the business purchased a fixed asset for 3,000, paying by cheque, a profit of 3,500 was made and creditors of 2,750 were paid by cheque. Calculate the capital at the start of the month?
A7,750
B11,500
C5,500
D8,250
(2 marks)
2.9 A sole trader has opening capital of 20,000 and closing capital of 9,000. During the period, the owner introduced capital of 8,000 and withdrew 16,000 for her own use. Calculate her profit or loss during the period?
A21,000 loss
B3,000 profit
C3,000 loss
D21,000 profit
(2 marks)
2.10The profit of a business may be calculated by using which one of the following formula?
AOpening capital Drawings Capital introduced Closing capital
BOpening capital Drawings Capital introduced Opening capital
COpening capital Drawings Capital introduced Closing capital
DClosing capital Drawings Capital introduced Opening capital
(2 marks)
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