Which of the following is not true with regard to preparation of Profit & Loss Account?

✅ A. Raw material consumed

Option A : Raw material consumed Option B : Plant purchased Option C : Long term loan raised from bank Option D : Share Capital Correct Answer : Raw material consumed Read more

✅ C. The amount of depreciation decreases while the rate of depreciation remains the same

Option A : The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing Option B : The amount of depreciation and the rate of depreciation decrease every year Option C : The amount of depreciation decreases while the rate of depreciation remains the same Option D : The amount of depreciation and the rate of… Read more

✅ A. Sales “ Cost of goods sold

Option A : Sales “ Cost of goods sold Option B : Sales “ Closing Stock + Purchases Option C : Opening Stock + Purchases “ Closing Stock Option D : None of the above Correct Answer : Sales “ Cost of goods sold Read more

✅ C. Accounts Receivable

Option A : Trade mark Option B : Franchise Option C : Accounts Receivable Option D : Secret Profit Read More Details about this Mcq Correct Answer : Accounts Receivable Read more

✅ B. Putting the new asset in working condition

Option A : Expenses for day to day running of the business Option B : Putting the new asset in working condition Option C : Depreciation Option D : Purchase of raw material Correct Answer : Putting the new asset in working condition Read more

✅ A. 18,387

Option A : 18,387 Option B : 18,560 Option C : 18,750 Option D : 19,000 Correct Answer : 18,387 Read more

✅ C. Ledger

Option A : Subsidiary books Option B : Journal Option C : Ledger Option D : Trial Balance Correct Answer : Ledger Read more

✅ A. Interest Rate

Option A : Interest Rate Option B : Required rate of return Option C : Nominal interest rate Option D : All of the above Correct Answer : Interest Rate Read more