Financial Statements

JKSSB Finance Accounts Assistant · Accountancy & Book-Keeping · 21 practice questions with answers and explanations: 6 Easy, 10 Medium, 5 Hard.

Sample questions

Sample Easy question 1

The Profit and Loss Account is prepared to ascertain the:

  1. Gross Profit only
  2. Net Profit or Net Loss of the business
  3. Bank balance
  4. Value of closing stock
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Answer: B. The Profit and Loss Account takes the Gross Profit (from Trading Account) and adjusts it for indirect expenses and incomes to arrive at Net Profit or Net Loss.

Sample Medium question 2

Which of the following appears on the liabilities side of a balance sheet?

  1. Capital
  2. Debtors
  3. Stock
  4. Cash at bank
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Answer: A. Capital represents the owner's claim and appears on the liabilities side; the others are assets.

Sample Hard question 3

Which of the following best describes 'Working Capital'?

  1. Current Assets minus Current Liabilities
  2. Total Assets minus Total Liabilities
  3. Fixed Assets minus Depreciation
  4. Capital plus Reserves
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Answer: A. Working Capital measures short-term liquidity as Current Assets minus Current Liabilities.

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