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Questions and Answers
Which of the following is NOT a component of Net Sales?
Which of the following is NOT a component of Net Sales?
- Gross Profit (correct)
- Sales Less: Sales Returns
- Carriage Inwards
- Sales Returns
What does the term 'Closing Inventory' represent?
What does the term 'Closing Inventory' represent?
- The inventory purchased during the accounting period
- The inventory sold during the accounting period
- The inventory at the start of the accounting period
- The inventory remaining at the end of the accounting period (correct)
Which of the following is NOT a step in the closing entries process?
Which of the following is NOT a step in the closing entries process?
- Transferring the Net Profit/Net Loss to the Capital account
- Transferring Income to the Capital account
- Transferring Expenses to the Trading/Profit and Loss account
- Transferring the Closing Inventory to the Balance Sheet (correct)
What is the purpose of the 'Carriage Inwards' account?
What is the purpose of the 'Carriage Inwards' account?
Which of the following accounts is NOT closed at the end of the accounting period?
Which of the following accounts is NOT closed at the end of the accounting period?
What is the purpose of the 'Purchases Returns' account?
What is the purpose of the 'Purchases Returns' account?
Which of the following accounts is used to record the Net Profit or Net Loss for the accounting period?
Which of the following accounts is used to record the Net Profit or Net Loss for the accounting period?
What is the purpose of the 'Drawings' account?
What is the purpose of the 'Drawings' account?
Which of the following accounts is used to record the cost of goods sold during the accounting period?
Which of the following accounts is used to record the cost of goods sold during the accounting period?
What is the purpose of the 'Other Income' account?
What is the purpose of the 'Other Income' account?
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