CBSE Class 11 (Commerce) Financial Statements of Sole Proprietorship — practice questions
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Practice CBSE Class 11 (Commerce) Financial Statements of Sole Proprietorship in the app →Payment of monthly salaries to staff is classified as which type of expenditure?Money spent to buy furniture for use in the business is classified as what?Which expenditure normally benefits the business for more than one accounting year?Which type of expenditure increases the earning capacity of a business?Expenditure on the day-to-day conduct of business is known as what?Heavy advertising spend likely to benefit several years is called what?Proceeds from selling an old machine are treated as which kind of receipt?Machinery repairs of Rs 20,000 are wrongly added to the machinery cost. What happens to profit?Furniture bought is wrongly shown as purchases. What is the effect on the accounts?Another name for the Trading and Profit and Loss Account is what?The balance sheet shows the financial position in the form of what?In a trial balance, debit balances represent which items?On what basis are the financial statements of a sole proprietor prepared?How is profit defined in the Trading and Profit and Loss Account?What is purchases less purchases returns called?Wages of workers engaged in loading and production are debited to which account?Carriage inwards is the cost of what?Rent-free accommodation given to an employee is treated as what?Interest paid on a bank overdraft is recorded how?Commission paid to agents on business transactions is treated as what?Small repairs to keep furniture in working condition are debited to which account?Small expenses clubbed together are known by which names?Goods returned by customers to the firm are called what?Which of these is an example of other income in the profit and loss account?The purchases returns account is closed by transfer to which account?Which one of these is a direct expense?Sales are Rs 1,25,000, purchases Rs 75,000 and wages Rs 8,000. What is the gross profit?Net profit equals gross profit plus what, less what?The excess of sales over purchases and direct expenses is called what?What result arises if purchases plus direct expenses exceed sales?Where is the net profit finally transferred?Which part of the combined account ascertains the gross profit?The trading account deals mainly with which business activities?Where are the indirect expenses transferred?With no opening or closing stock, purchases are Rs 75,000 and wages Rs 8,000. What is the cost of goods sold?Purchases are Rs 75,000, wages Rs 8,000 and closing stock Rs 15,000. What is the cost of goods sold?What interest is charged for a year on a 10% long-term loan of Rs 5,000?Operating profit is the same as profit before what?Which item is left out while calculating operating profit?The balance sheet is a statement of assets and liabilities at what point?In the horizontal balance sheet, capital and liabilities appear on which side?For a proprietary firm, the balance sheet format is what?Which law prescribes the balance sheet format for a company?Which assets are cash or can be converted into cash within a year?Which of these is a current liability?Fixed assets are held in the business for what purpose?Which of these is an intangible asset?Long-term liabilities are usually payable after how long from the balance sheet date?Capital is defined as the excess of assets over what?What is the effect of the proprietor's drawings on capital?How are drawings shown in the balance sheet?Arranging assets and liabilities in a set order is known as what?In which two orders can balance sheet items be arranged?Which asset is the most liquid?In order of permanence, which asset is placed at the top?How does the order of liquidity compare with the order of permanence?Capital Rs 16,500, long-term loan Rs 5,000, creditors Rs 15,000. What is the balance sheet total?In the opening entry, which accounts are debited?A bank mainly wants financial information to judge what?For managers, financial statements work like what?What is the basic objective of preparing financial statements?If total debits and credits in the trial balance agree, what is assumed?Which book records all cash and bank transactions?Where are all credit sales recorded?Entries not recorded in any special book go into which book?A trial balance lists wages, salaries, rent and bad debts. Which is the only direct expense?Why is the government interested in a business's profitability?