Trading and Profit and Loss 4th Form

Sales $36 000

Purchases $22000

Gross Profit $11000

Closing Stock $6000

Sales Returns $1000

Opening Stock $8000

What is cost of goods sold ?

• $ 7 000

• $ 9 000

• $24 000

• $30 000

Opening stock $ 760

Purchases $3 890

Returns on purchases $ 750

Closing stock $ 870

What is the cost of goods sold?

• $3 030

• $4 530

• $4 750

• $6 270

The gross profit of a firm is $3 600, bad debts $100,

rent paid $120, rent prepaid $20, general expenses

$80 and discount received $110. The net profit is

• $3 400

• $3 410

• $3 430

• $3 710

In the Trading Account the Returns Inwards should be :

• Added to cost of good sold

• deducted from purchases

• deducted from sales

• added to sales

Net Profit is

• Sales less purchases add opening stock less closing stock

• Gross profit add expenses of the period

• Capital plus all expenses

• Gross profit less expenses of the period

The account which discloses the gross profit or loss

is called the

• Profit and Loss A/c

• Appropriation A/c

• Trading A/c

• Cash A/c

In the trading account, returns outwards is deducted

from

• Carriage outwards

• Carriage inwards

• Purchases

• Sales

Which of the following are ALL components of the Income statement?

• Net sales, Cost of sales, Net profit

• Non-current liabilities, Capital, Expenses

• Net current assets, Gross profit, Cost of sales

• Gross profit, Current assets, Current liabilities

Which of the following is NOT considered to be an outflow?

• Rent

• Sales

• Utilities

• Wages and salaries

Sales $36 000

Purchases $22000

Gross Profit $11000

Closing Stock $6000

Sales Returns $1000

Opening Stock $8000

Calculate the Gross Profit

• $24 000

• $30 000

• $11,000

• 59,000