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

Accounting Mcqs 28/08/2024

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

Related Mcqs:

    Transactions that a BUSINESS doesn’t record in any specialised journal are recorded in which of the following journals or day books?
    A. Cash payments journal B. Cash receipts journal C. Purchases return journal D. General journal...
    An asset must be _______ by the business to be shown as an asset in its “balance sheet”
    A. Possessed B. Owned C. Controlled D. Used...
    The other name of journal is____________?
    A. Ledger B. T account C. Day book D. Cash book...
    Tax deducted at source appears in the Balance Sheet
    A. On the assets side under current assets B. On the assets side under loans and advances C. On the liabilities side under current liabilities D. On the liabilities side under provisions...
    Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?
    A. 5,80,000 B. 5,50,000 C. 5,00,000 D. 5,75,000...

Leave a Reply

Your email address will not be published. Required fields are marked *