Trading, profit and loss account - JSS3 Business studies Past Questions and Answers - page 1
What is the primary purpose of a Trading, Profit, and Loss Account
To summarize business revenues and expenses
To calculate the total assets of a business
To determine the market value of goods
To manage employee salaries
What does a Trading Account primarily include?
Operating expenses
Revenue from non-core activities
Direct expenses and revenues related to core operations
Interest income
Which of the following is deducted from total revenue to calculate gross profit in a Trading Account?
Operating expenses
Non-operating income
Cost of Goods Sold (COGS)
What represents the difference between total revenue and total expenses in a Profit and Loss Account?
Gross Profit
Net Profit/Loss
Operating Revenue
Non-operating Expenses
Which component of a Profit and Loss Account represents revenue generated from primary business activities?
Operating Revenue
Non-operating Income
Gross Profit
What is subtracted from total revenue to calculate Gross Profit in a Profit and Loss Account?
Operating expenses
Non-operating income
Cost of Goods Sold (COGS)
Closing stock
Which statement accurately describes the purpose of a Profit and Loss Account?
To determine the value of assets
To record daily transactions
To calculate net profit or loss during a specific period
To manage employee benefits
What is the main focus of a Trading Account?
Operating expenses
Non-operating income
Direct expenses and revenues related to core operations
Interest income
What represents the total cost of goods sold in a Trading Account?
Opening stock
Closing stock
Sales revenue
Purchases minus closing stock
Which component is deducted from gross profit to calculate net profit in a Profit and Loss Account?
Operating expenses
Non-operating income
Cost of Goods Sold (COGS)
Opening stock
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