Chapter Exam

Chapter 11 ACCOUNTANCY : Final Accounts — Online MCQ Test

Q: Which account is prepared to determine the Gross Profit or Gross Loss of a business?

Answer: B. Trading Account — Trading account is specifically prepared to ascertain the Gross Profit or Gross Loss by comparing net sales with the cost of goods sold.

Q: Which of the following items is recorded on the debit side of the Trading Account?

Answer: C. Carriage Inwards — Carriage Inwards is a direct expense related to the purchase of goods, thus it is debited to the Trading Account.

Q: If the debit side of the Profit and Loss Account is greater than the credit side, it results in:

Answer: D. Net Loss — Excess of expenses (debits) over incomes (credits) in the Profit and Loss Account results in a Net Loss.

Q: Which item will NOT appear in the Final Accounts of a sole trader?

Answer: C. Authorized Capital — Authorized Capital is a term specifically used for Companies (Corporations) to define the maximum share capital, not for sole proprietorships.

ACCOUNTANCY · CLASS 11 INTER I YEAR · Andhra State Board

Practice Chapter 11 ACCOUNTANCY : Final Accounts with a free chapter-wise online MCQ test for Andhra State Board CLASS 11 INTER I YEAR ACCOUNTANCY. This chapter covers: This chapter covers preparing sole proprietorship trading account profit and loss account and balance sheet without adjustments.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 11 ACCOUNTANCY : Final Accounts — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 11 INTER I YEAR ACCOUNTANCY — Chapter 11 ACCOUNTANCY : Final Accounts, with answers and explanations. These are sample questions; the exam has its own separate question set.

Which account is prepared to determine the Gross Profit or Gross Loss of a business?

A. Balance Sheet
B. Trading Account ✓
C. Profit and Loss Account
D. Trial Balance

Answer: B. Trading Account
Trading account is specifically prepared to ascertain the Gross Profit or Gross Loss by comparing net sales with the cost of goods sold.

Which of the following items is recorded on the debit side of the Trading Account?

A. Sales
B. Closing Stock
C. Carriage Inwards ✓
D. Interest Received

Answer: C. Carriage Inwards
Carriage Inwards is a direct expense related to the purchase of goods, thus it is debited to the Trading Account.

If the debit side of the Profit and Loss Account is greater than the credit side, it results in:

A. Gross Profit
B. Gross Loss
C. Net Profit
D. Net Loss ✓

Answer: D. Net Loss
Excess of expenses (debits) over incomes (credits) in the Profit and Loss Account results in a Net Loss.

Why are 'Drawings' deducted from the Capital in the Balance Sheet?

A. Because they are considered a business expense
B. Because they represent a reduction in the owner's investment ✓
C. Because they are a current liability
D. Because they increase the firm's assets

Answer: B. Because they represent a reduction in the owner's investment
Drawings reflect the withdrawal of cash or goods for personal use, which reduces the owner's capital invested in the business.

Which item will NOT appear in the Final Accounts of a sole trader?

A. Wages
B. Trade Expenses
C. Authorized Capital ✓
D. Capital

Answer: C. Authorized Capital
Authorized Capital is a term specifically used for Companies (Corporations) to define the maximum share capital, not for sole proprietorships.

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Chapter 10 ACCOUNTANCY : Trial Balance

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Chapter 12 ACCOUNTANCY : Final Accounts with Adjustments