Here are 30 multiple-choice questions (MCQs) on the Profit and Loss Account chapter of Accountancy, with the correct answers marked:
1. **The Profit and Loss Account shows:**
- a) Assets
- b) Liabilities
- **c) Profit or Loss**
- d) None of the above
2. **The net result of a Profit and Loss Account is:**
- a) Net Profit or Net Loss
- **b) Gross Profit**
- c) Closing Stock
- d) Opening Stock
3. **Which of the following is credited to the Profit and Loss Account?**
- **a) Discount Received**
- b) Discount Allowed
- c) Rent Paid
- d) Salaries
4. **Prepaid expenses appear in the:**
- a) Trading Account
- b) Profit and Loss Account
- **c) Balance Sheet**
- d) Trial Balance
5. **The balance of the Profit and Loss Account is transferred to:**
- **a) Capital Account**
- b) Trading Account
- c) Suspense Account
- d) Drawing Account
6. **Which of the following is debited to the Profit and Loss Account?**
- a) Sales
- **b) Interest Paid**
- c) Interest Received
- d) Commission Received
7. **Profit and Loss Account is a part of:**
- a) Balance Sheet
- **b) Final Accounts**
- c) Trial Balance
- d) Ledger
8. **Bad Debts are shown in the:**
- a) Trading Account
- **b) Profit and Loss Account**
- c) Balance Sheet
- d) Cash Book
9. **Which of the following is NOT shown in the Profit and Loss Account?**
- a) Rent Paid
- **b) Closing Stock**
- c) Discount Allowed
- d) Salary Paid
10. **The main purpose of preparing a Profit and Loss Account is to determine:**
- **a) Net Profit or Net Loss**
- b) Gross Profit
- c) Financial Position
- d) Total Expenses
11. **Provision for doubtful debts is shown in the:**
- a) Trading Account
- **b) Profit and Loss Account**
- c) Balance Sheet
- d) Cash Flow Statement
12. **Profit and Loss Account is prepared for a:**
- a) Month
- b) Quarter
- **c) Year**
- d) Day
13. **The debit side of the Profit and Loss Account contains:**
- **a) Expenses and losses**
- b) Incomes and gains
- c) Assets
- d) Liabilities
14. **Profit and Loss Account starts with:**
- a) Opening Stock
- **b) Gross Profit**
- c) Closing Stock
- d) Net Profit
15. **Which of the following is a nominal account?**
- a) Cash Account
- **b) Profit and Loss Account**
- c) Capital Account
- d) Debtor's Account
16. **Income tax paid by a sole proprietor is:**
- a) Business Expense
- **b) Personal Expense**
- c) Revenue Expense
- d) Capital Expense
17. **Salaries due but unpaid are shown as:**
- a) Prepaid Expense
- **b) Outstanding Liability**
- c) Revenue Income
- d) Capital Income
18. **The balance in the Profit and Loss Account (after transferring the profit) is shown in the:**
- a) Trading Account
- **b) Capital Account**
- c) Asset side of the Balance Sheet
- d) Cash Book
19. **Interest on drawings is shown in the:**
- a) Trading Account
- **b) Profit and Loss Account**
- c) Balance Sheet
- d) Ledger
20. **Profit and Loss Account is prepared on the basis of:**
- a) Cash Basis
- **b) Accrual Basis**
- c) Credit Basis
- d) Balance Basis
21. **Which of the following is shown as an expense in the Profit and Loss Account?**
- **a) Bad Debts**
- b) Sales
- c) Purchase Returns
- d) Interest Received
22. **Net Profit is added to:**
- a) Fixed Assets
- b) Current Liabilities
- **c) Capital Account**
- d) Drawings
23. **Which of the following is not an indirect expense?**
- **a) Wages**
- b) Rent
- c) Insurance
- d) Salaries
24. **Dividend received is shown on the:**
- a) Debit side of the Profit and Loss Account
- **b) Credit side of the Profit and Loss Account**
- c) Asset side of the Balance Sheet
- d) Liability side of the Balance Sheet
25. **Profit and Loss Account is also known as:**
- **a) Income Statement**
- b) Revenue Statement
- c) Capital Account
- d) Balance Sheet
26. **The main objective of preparing a Profit and Loss Account is to determine:**
- a) Gross Profit
- **b) Net Profit**
- c) Financial Position
- d) Cash Balance
27. **Depreciation is shown on the:**
- a) Credit side of the Profit and Loss Account
- **b) Debit side of the Profit and Loss Account**
- c) Asset side of the Balance Sheet
- d) Liability side of the Balance Sheet
28. **The closing stock is shown in:**
- **a) Trading Account and Balance Sheet**
- b) Profit and Loss Account
- c) Balance Sheet only
- d) Cash Book
29. **Commission received is shown on the:**
- a) Debit side of the Profit and Loss Account
- **b) Credit side of the Profit and Loss Account**
- c) Asset side of the Balance Sheet
- d) Liability side of the Balance Sheet
30. **Which
of the following appears in both the Trading Account and the Profit and Loss Account?**
- a) Sales
- **b) Gross Profit**
- c) Net Profit
- d) Purchase Returns
No comments:
Post a Comment