Accountancy Unit 12

Closing stock is an item of .........

• Fixed asset

• Current asset

• Fictitious asset

• Intangible asset

Balance sheet is _______

• An account

• A statement

• Neither a statement nor an account

• None of the above

Net profit of the business increases the

• Drawings

• Receivables

• Debts

• Capital

Carriage inwards will be shown

• In the trading account

• In the profit and loss account

• On the liabilities side

• On the assets side

Bank overdraft should be shown

• In the trading account

• Profit and loss account

• On the liabilities side

• On the assets side

Balance sheet shows the ______of the business

• Profitability

• Financial position

• Sales

• Purchases

Drawings appearing in the trial balance is

• Added to the purchases

• Subtracted from the purchases

• Added to the capital

• Subtracted from the capital

Salaries appearing in the trial balance is shown on the

• debit side of trading account

• debit side of profit and loss account

• liabilities side of the balance sheet

• assets side of the balance sheet

Current assets does not include

• cash

• stock

• furniture

• prepaid expenses

Goodwill is classified as

• a current assets

• a tangible asset

• a liquid asset

• an intangible asset