Overview of Companies Financial Statements

Q.

Drawings are shown as _______ in the vertical form of the balance sheet.

1. addition to equity/capital

2. addition to current assets

3. deduction from current liabilities

4. deduction from equity/ capital

Q.

What is the correct formula for calculation of closing stock?

1. None of the above

2. Opening stock - Direct expenses - Cost of goods sold

3. Opening stock + Direct expenses - Cost of goods sold

4. Opening stock + Direct expenses + Cost of goods sold

Q.

Under vertical presentation, the final accounts are prepared in a form of the statement with different items being shown one _____ the other.

1. below

2. side by side

3. None of the above

4. above

Q.

Following transactions have occurred. Find the total expenditure to be carried to Repair expenditure.

`- Rs 500 paid for installation of machinery was debited to wages account

`- Rs 5000 paid for extension of building was debited to repairs account

`- Rs 2000 paid for repair of an existing machine was debited to machinery account

1. Rs 2000

2. None of the above

3. Rs 7500

4. Rs 5000

Q. Where are the amounts owed to the supplier for credit sales found?

[0.88 marks]

1. Accounts payable journal
2. General ledger
3. Purchase journal
4. Accounts payable subsidiary ledger

Q.

formula of closing and opening capital?