Practice - Key Concepts - 17.3.3
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Practice Questions
Test your understanding with targeted questions
What is the purpose of a trading account?
💡 Hint: Think about how businesses evaluate their primary sales performance.
Define net profit.
💡 Hint: It’s the bottom line on the profit and loss account.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary purpose of the trading account?
💡 Hint: Think about which account relates directly to sales performance.
True or False: The balance sheet shows the net profit of a business.
💡 Hint: Consider what a balance sheet represents.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A company starts with a cash sales revenue of ₹150,000, and its opening stock is ₹20,000. They make purchases totaling ₹70,000 and have closing stock of ₹30,000. Calculate the gross profit.
💡 Hint: Use the gross profit formula and substitute the values.
If a business records indirect expenses totaling ₹18,000 and finds a gross profit of ₹45,000, what will be the net profit for the business?
💡 Hint: Directly subtract indirect expenses from gross profit.
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