Analysing Statement of Profit and Loss

Q.

What Are the Factors Affecting Goodwill?

Q.

Explain the nature of the financial statements.

Q.

Is Fixed Deposit a Current Asset?

Q.

_________________ shows the effect of the material consumed, the purchases of stock in trade and the changes in inventory of work in progress and finished goods.

1. Revenue from operations

2. Other Expenses

3. Cost of Material Consumed

4. None of these

Q.

State the nature of Income and Expenditure Account.

Q.

Outstanding salary is shown as:

1. Accumulated Other Comprehensive Income

2. Significant Accounting Policies

3. Commitments And Contingencies

4. None of these

Q.

Is a fixed asset register mandatory as per the companies act 2013?

Q.

Profit & Loss Account shows -

1. the financial performance at a particular date

2. the financial position at a particular date

3. the financial position for an accounting period

4. the financial performance for an accounting period

Q.

How to write off fixed assets?

Q.

A corporation's net income will cause an increase to which of the following?

1. Accumulated Other Comprehensive Income

2. Retained Earnings

3. Common Stock

4. None of these

Q.

Purchase of goodwill is an investing activity.

1. True
2. False

Q.

Amounts earned by a company in its main operating activities are__________

1. Revenues

2. Gains

3. Profits

4. None of these

Q.

Identify which of the following items will be shown in the Notes to Accounts on Employee Benefit Expenses:

(i) Wages

(ii) Salaries

(iii) Office Expenses

(iv) Staff Welfare Expenses

(v) Entertainment Expenses

(vi) Bonus

(vii) Leave Encashment Exp

(viii) Expenses on Employees Stocke Option Scheme.

Q. Briefly explain the importance of preparing financial statements.

Q.

How do you prepare financial statements from incomplete records?

Q.

What is the purpose of amortisation?

Q.

Explain the limitations of financial statements.

Q. Steps of preparing Final Accounts is -
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet

1. True
2. False

Q.

How can opening capital be determined from incomplete records?

Q.

The income statement heading will specify which of the following?

1. None of these

2. A point of time

3. A period of time

4. Can't say

Q.

Why is GAAP important?

Q.

Is Goodwill a Fictitious Asset?

Q.

How to prepare a fixed asset schedule?

Q.

How Do You Identify Intangible Assets?

Q.

Is it acceptable that some of the expenses reported on the income statement be estimates?

1. Yes

2. Partially Yes

3. None of these

4. No

Q. Sort the following items in the order they will appear in the statement of profit and loss :

1. Other Income
2. Total Revenue
3. Total Expenses
4. Tax Expense

Q. Answer the following in brief :

State any three limitations of Analysis of financial statement.

Q. Outstanding expenses are shown ________________.

1. By way of deduction in the Income statement
2. As a current asset
3. As a long-term liability
4. As a current liability

Q.

Gross profit is:

1. Cost of goods sold + Opening stock

2. Sales – cost of goods sold

3. Sales – Purchases

4. Net profit – expenses

Q.

What Is a Goodwill Example?