Income Side of Statement of Profit and Loss

Q. Commission earned forms part of in the statement of profit and loss.

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

Q.

Fictitious assets are shown on the asset side of the balance sheet of a company ________

Q.

What account is petty cash under?

Q.

Revenue from operations includes _____.

1. Sale of services

2. Other operating revenues

3. Sale of products

4. All of these

Q.

A company disposes of equipment that it no longer uses in its business. The amount received by the company is more than the amount the asset is carried at in the accounting records. The company will report a(n)

1. Expense

2. Gain

3. Loss

4. Revenue

Q.

Interest income in case of a company other than a finance company is Revenue from operations.

1. True

2. None of these

3. False

4. Partially true

Q.

Is it true or false that a grocery store’s sale of its old delivery van to one of its employees for Rs. 2, 000 should be recorded in the Revenue from Operations?

1. True

2. False

3. Partially True

4. None of these

Q.

Other Income is a part of revenue from operations.

1. True

2. False

3. None of these

4. Partially true

Q.

___ represents revenue, expenses and financial result of a business entity.

1. Balance sheet

2. Notes to accounts

3. Statement of profit & loss

4. None of these

Q. What is an Operating profit?

Q.

1. The percentage of Gross Profit serves as a guide in fixing the selling price of the goods in future
2. The percentage of Net Profit on sales can be ascertained
3. The stock at commencement can be compared with the stock at end in order to ascertain whether the purchases have been wise
4. The trading account affords facilities for comparing the figures of sales and direct expenses with those of previous years.

Q. An abnormal gain in a process occurs in which of the following situations?

1. When costs are reduced through increased machine speed
2. When actual losses are less than the normal level
3. When the process output is greater than planned
4. When actual losses are greater than the normal loss level

Q. The second item in the statement of profit and loss is .

1. Other Expenses
2. Other Income
3. Total Expenses
4. Total Income

Q. Goods costing Rs.10, 000 destroyed as free sample should be credited to

1. Purchase Account
2. Sales account
3. Cash Account
4. Drawing Account

Q. Operating profit is the profit a business earns from the business through the _________.

1. Operations
2. Activities
3. Both
4. None

Q. All accounts related to goods and direct expenses are recorded in ___________ account.

1. profit and loss
2. cash
3. trading
4. capital

Q. An adjusting entry to accrued wages earned but not yet paid is an example of _______________.

1. Reflecting unrecorded revenue earned during the accounting period.
2. Adjusting recorded costs with the appropriate accounting periods
3. Adjusting recorded revenue with the appropriate accounting periods
4. Reflecting unrecorded expenses incurred during the accounting period

Q. State whether the following statement are True or False.

The interest on capital is an income of the firm.

Q. Account Sales _____________.

1. Have a very particular format
2. Does not have a specific format
3. Must be prepared by law
4. Given by consignor to consignee

Q. Select the most appropriate answer from the alternatives given below and rewrite the sentence :

Interest on Calls-in-arrears is ______________for the company.
a) income
b) expenditure
c) gain
d) loss

Q. represents revenue, expenses and financial result of a business entity.

1. Balance sheet
2. Notes to account
3. Statement of P&L
4. Bank Statement

Q. Which of the following would you include within the cost of sale?

1. Depreciation of furniture
2. Depreciation of office equipment
3. Depreciation of machinery used in production effort
4. Depreciation of vehicles

Q. Which one of the following is not matched?
List I: List II