Accounting Multiple Choice Question – 26 January 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which of the following is prepared in order to determine a firm’s net profit or net loss for an accounting period?

Select ONE answer:

  1. a trading account
  2. a profit and loss account
  3. a trial balance
  4. a balance sheet

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 2
1 – determines the gross profit only
3 – purpose is to show the total of the debit balances brought down in its nominal or general ledger equals that of the credit balances brought down
4 – prepared to show the financial position of the entity

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