Analysing Statement of Profit and Loss

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.

In the case of the retail shop of medicines, the Profit on Sale of Building is to be shown under :

1. Revenue from Operations

2. Other Income

3. Either Revenue from Operations or Other Income

4. None of these

Q.

Which of the following is not a current asset ?

1. An asset in the balance sheet

2. A liability

3. By adjusting it in the P & L a/c

4. Both:

   A liability

   By adjusting it in the P & L a/c

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.

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.

Information about accounting policies assists financial readers in better interpreting a company’s financial statements. It is given in ___

1. Balance sheet

2. Statement of profit & loss

3. Notes to accounts

4. None of these

Q.

Outstanding salary is shown as:

1. Accumulated Other Comprehensive Income

2. Significant Accounting Policies

3. Commitments And Contingencies

4. None of these

Q.

Amortisation is the decrease in the value of _________ .

1. All fixed Assets

2. Tangible Assets

3. Intangible Assets

4. None of these

Q.

Goodwill is -

1. Partially true

2. False

3. True

4. None of these

Q.

Amounts earned by a company in its main operating activities are__________

1. Revenues

2. Gains

3. Profits

4. None of these