MCQs BASED ON TRADING ACCOUNT AND PROFIT LOSS ACCOUNT AND BALANCE SHEET 1. Current assets are converted into cash a) Within one year b) Within two year c) With in three year d) None of these 2. Stock owned by a firm are classified as a) Fixed asset b) Current asset c) Current liability d) None of these 3. Loss by fire of goods is credited to a) Profit and loss a/c b) purchase a/c c) loss by fire a/c d) None of these 4. Cost are equal to a) Cost of good sold + gross profit b) Cost of good sold - gross profit c) Gross profit - cash of good sold d) None of these 5. Wages paid by a trader is shown a) On the debit side of trading account b) On the debit side of profit and loss account c) as deduction from capital in balance sheet d) as addition to capital in balance sheet 6. Preliminary expense will be a a) Fictitious assets b) Tangible assets c) Intangible assets d) Expenses 7. Return outward appearing in the trial balance is d
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