Net loss occurs when______________?

Related Mcqs:

1. Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

   A. Added, Reduced
   B. Added, Added
   C. Deducted, Added
   D. Deducted, Deducted

2. A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car?

   A. 20,000 Loss
   B. 20,000 Profit
   C. 10,000 Loss
   D. 10,000 Profit

3. A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car?

   A. Loss of 20,000
   B. Loss of 22,000
   C. Loss of 11,000
   D. Profit of 11,000

4. Which of the following is not true with regard to preparation of Profit & Loss Account?

   A. Profit & Loss Account is prepared for a certain period and hence it is an interim statement
   B. Profit & Loss Account does not disclose the effect of non-financial items
   C. Net Profits are ascertained on the basis of current costs
   D. Net Profits as disclosed by P&L Account is not absolute

5. The Profit and Loss Account shows the:

   A. Financial results of the concern for a period
   B. Financial position of the concern on a particular date
   C. Financial results of the concern on a particular date
   D. Cost of goods sold during the period

6. Which of the following will not appear in Profit and Loss Account of a business?

   A. Drawings
   B. Bad debts
   C. Accrued expenses
   D. Reserve for discount on Sundry Creditors

7. Which of the following assets is/are to be valued at the lower of cost and net realizable value?

   A. Goodwill
   B. Inventories
   C. Investments
   D. Both B. and C. above.

8. The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by

   A. 17,000 (overstated.
   B. 12,000 (understated.
   C. 7,000 (overstated.
   D. 7,000 (understated.

9. Net sales equals, sales minus:

   A. Return outwords
   B. Return inwards
   C. cost of goods sold
   D. carriage on sales

   Submitted by: Kamran Ahmad

10. From the following details what will be the partners commission? Net profit before charging partners commission 65,000. Partners commission @ 11% after charging such commission.

    A. 6441
    B. 5431
    C. 7654
    D. 9876