1381. A balance sheet discloses the financial position of a firm :

A. For a given period
B. On a particular point of time *
C. On a certain fixed date
D. After the fixed date

1382. Sales are equal to :

A. Cost of goods sold+ profit *
B. Gross profit- cost of goods sold
C. Cost of goods sold less gross profit
D. Cost of goods sold -Gross profit

1383. Gross profit is equal to :

A. Sales-closing stock
B. Purchases – closing stock
C. Sales-cost of goods sold *
D. Sales + opening stock

1384. Cost of sales is equal to :

A. Sales- purchases
B. Purchases-returns out+ closing stock
C. Opening stock+ closing stock+ purchases+Returns out
D. Opening stock- closing stock +Purchases +Returns out *

1385. A balance sheet is a :

A. Statement of debtors and creditors
B. Statement of income and expenditures
C. A company’s financial statements as of a specific date *
D. Statement of a profit earned by a business

1386. The following are examples of obligations that must be fulfilled:

A. Within one year *
B. Within two years
C. Within three years
D. Within four years

1387. out of the following , the example of a current asset is :

A. Surrender value of life insurance policy
B. Discount on debentures
C. Bill receivable *
D. Good will

1388. Purchase of an asset is called :

A. An expense
B. An expenditure *
C. A loss
D. An income

1389. The balance appearing on the debit side of the trial balance as an expenditure shown in the :

A. Balance sheet *
B. Trading account
C. Profit and loss account
D. Income statement

1390. If the profit is 1/4 of the sales than it is :

A. 1/4 of the cost price
B. 1/3 of the cost price *
C. 1/5 of the cost price
D. 1/2 of the cost price