Basics of Profit or Loss Account

Q.

What is abnormal loss and its formula?

Q.

Debit balance in the profit and loss account is a profit. Comment.

Q.

What do you understand by accounting information?

Q. All direct expenses are shown on the debit side of the trading account and all indirect expenses are shown on the debit side of the _____.

1. Balance Sheet
2. Profit and Loss Account
3. None of these
4. Capital Account

Q.

Repairs to machinery is shown as __________ in profit or loss account.

1. Revenue

2. Expenses

3. Not shown

4. None of these

Q.

Explain in brief, the limitations of financial accounting.

Q.

What is fund based accounting?

Q.

All expenses are shown on _______ side of profit or loss account.

1. Debit

2. Both A & B

3. Credit

4. None of these

Q. Prepaid expenses of Rs. 9, 000 are shown on the liabilities side of the balance sheet.

1. True
2. False

Q.

Profit and Loss account is based on:

1. None of the above

2. Government accounting

3. Cash Accounting

4. Accrual Accounting

Q.

The balancing figure of the ______ is either net profit or net loss.

1. None of the above

2. Profit & Loss account

3. Balance sheet

4. Cash Flow Statement

Q.

which account will auit fees go in final accounts pand l or balance sheet

Q. In which account personal transaction of owner can be recorded?

1. Cash account.
2. Drawing account
   
3. All of the above
4. Bank account
   

Q. Excess of credit over debit in Profit and Loss A/c indicates ________.

1. Net Profit
2. Gross Profit
3. Gross Loss
4. Net Loss

Q.

How do you solve an abnormal loss?

Q. Answer the following questions in 'one' sentence each:
What is Gain Charges?

Q. All flow variables are recorded in profit and loss account.

1. False
2. True

Q. Select the most appropriate alternative from those given below:
Gross Profit or Gross Loss is transferred to _______ Account.

1. Profit and Loss
2. Trading
3. Profit and Loss Appropriation
4. None of these

Q. Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation, is termed as ____________.

1. Provision
2. Liability
3. Contingent liability
4. None of these.

Q.

Wages paid for installation of any asset is debited to ___ Account.

1. Asset

2. None of the above

3. Wages

4. Cash

Q.

$S.P.=C.P.-\_\_\_\_$