Which financial statement shows the net profit or loss for an accounting period? MCQ with Answer and Explanation

Question

Share Report Error

Which financial statement shows the net profit or loss for an accounting period?

A. Cash Flow Statement

B. Trial Balance

C. Balance Sheet

D. Statement of Profit & Loss

Answer: Option D

Solution (By JKSSB Mock Tests)

The Statement of Profit & Loss (Profit & Loss Account) calculates the net result of operations.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Social accounting is primarily concerned with:

A. Minimizing corporate taxes

B. Calculating national income and economic performance of the country

C. Maximizing shareholder wealth

D. Recording petty cash expenses

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
At a macro level, social accounting (or national income accounting) measures the economic activity, income, and expenditure of a nation.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Identify the non-cash item from the following:

A. Purchase of machinery

B. Wages paid

C. Dividend paid

D. Depreciation

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Depreciation is the systematic allocation of asset cost; it does not involve any actual outflow of cash.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

S1: In a partnership, if a partner retires, his loan to the firm is transferred to his loan account, which is a liability for the firm. S2: If the retiring partner's loan is not settled immediately, it is treated as a loan and interest is allowed as per the deed or at 6% p.a. if the deed is silent. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. S1 only

C. Both S1 and S2

D. S2 only

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Both statements are correct. Upon retirement, the partner's capital balance is transferred to his loan account if not paid immediately. This becomes a liability, and interest is charged to the P&L Account at the agreed rate or 6% p.a. if silent.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs