Trading a/c is prepared by the enterprise engaged in_______.

trading activities

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manufacturing activities

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mining activities

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overseas export-import

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Solution

The correct option is A trading activities
At the end of every financial year, books of account of business are closed to prepare the financial statements. Financial statements consist of the following:

Manufacturing Account
Trading Account
Profit & Loss Account
Balance Sheet

Trading account is prepared to know the gross profit earned from the trading activity.

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Name the trade where import of goods is made before the export of goods.

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