Start learning →

CA Foundation Final Accounts of Sole Proprietors — practice questions

Explore 80 free Final Accounts of Sole Proprietors questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

Practise Final Accounts of Sole Proprietors with Quill →

Final Accounts of Sole Proprietors questions and exercises with answers

Showing questions 1–30 of 80.

Which final account represents a single moment in time?Read the answer and worked solution →Another name for the income statement of a business is theRead the answer and worked solution →A balance sheet is also known as the statement ofRead the answer and worked solution →In law, the business of a sole proprietor is treated asRead the answer and worked solution →The liability of a sole proprietor for business debts isRead the answer and worked solution →A partnership differs from a sole proprietorship because it has at least how many owners?Read the answer and worked solution →In a sole trader's balance sheet, assets less liabilities gives theRead the answer and worked solution →Assets in a standard balance sheet are typically listed in the order of theirRead the answer and worked solution →Net current assets are computed asRead the answer and worked solution →Which item is a non-current (fixed) asset of a trader?Read the answer and worked solution →Money received from customers for services not yet provided is shown asRead the answer and worked solution →Rent paid in advance for next year is first recorded in aRead the answer and worked solution →Adjusting entries at the end of a period aim toRead the answer and worked solution →The matching principle requires revenues and related costs to be recognised inRead the answer and worked solution →Salary earned by staff but unpaid at the year end is recorded asRead the answer and worked solution →Interest earned on investments but not yet received at the year end is recorded asRead the answer and worked solution →Which year-end adjustment is also an estimate?Read the answer and worked solution →Under a periodic inventory system, the closing stock entry helps determineRead the answer and worked solution →Cost of goods sold represents theRead the answer and worked solution →Freight paid to bring purchased goods to the shop is part ofRead the answer and worked solution →A reduction in the invoice price for paying immediately or within a set time is aRead the answer and worked solution →Which expense is excluded from cost of goods sold?Read the answer and worked solution →Which cost is included in the cost of goods sold of a manufacturer?Read the answer and worked solution →Gross profit is equal toRead the answer and worked solution →Net sales are gross sales lessRead the answer and worked solution →Operating profit is gross profit lessRead the answer and worked solution →Gross sales are Rs 5,20,000, trade discounts Rs 12,000 and returns Rs 8,000. Net sales areRead the answer and worked solution →Net sales are Rs 4,00,000 and cost of goods sold Rs 3,00,000. The gross margin percentage isRead the answer and worked solution →Gross profit is Rs 2,40,000 and operating expenses are Rs 1,65,000. Operating profit isRead the answer and worked solution →Operating profit is Rs 90,000, interest Rs 12,000 and tax Rs 8,000. Net income isRead the answer and worked solution →

Worked practice questions

Which final account represents a single moment in time?

  1. Manufacturing account
  2. Appropriation account
  3. Profit and loss account
  4. Balance sheet of the firm
Show answer and solution

Correct answer: D. Balance sheet of the firm

A balance sheet lists assets, liabilities and capital at one date, while the income accounts cover a whole period.

Open this question →

Another name for the income statement of a business is the

  1. Profit and loss account
  2. Suspense ledger account
  3. Capital ledger account
  4. Realisation account
Show answer and solution

Correct answer: A. Profit and loss account

The income statement is also called the profit and loss account because it nets revenues against expenses.

Open this question →

A balance sheet is also known as the statement of

  1. Financial position
  2. Changes in equity
  3. Retained earnings
  4. Cash flows and funds
Show answer and solution

Correct answer: A. Financial position

Statement of financial position is the alternative title for the balance sheet.

Open this question →

How to practise

  1. Choose a Final Accounts of Sole Proprietors question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Final Accounts of Sole Proprietors practice for CA Foundation. Read explanations as you go. No signup form needed to start.

Practise Final Accounts of Sole Proprietors →

More Accounting topics

Accounting ConceptsBills of Exchange and Promissory NotesCompany AccountsDepreciation and AmortisationInventoriesPartnershipBank Reconciliation StatementPartnership Accounts