Practice Objectives (17.1.2) - Final Accounts (Trading, Profit & Loss Account and Balance Sheet)
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Practice Questions

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Question 1 Easy

What is the definition of Gross Profit?

💡 Hint: Think about what costs are directly related to producing a product.

Question 2 Easy

Why is the Balance Sheet important?

💡 Hint: Consider what information stakeholders might need to assess a business.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is included in Gross Profit?

Revenue from sales only
Revenue less COGS
Net Profit

💡 Hint: Focus on what costs are directly associated with production.

Question 2

True or False: Net Profit includes all expenses associated with running the business.

True
False

💡 Hint: Think about the definition of Net Profit.

2 more questions available

Challenge Problems

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Challenge 1 Hard

A company has a sales revenue of ₹1,200,000. If direct costs amount to ₹600,000 and indirect costs are ₹200,000, calculate the Gross and Net Profit.

💡 Hint: Break down the calculations step by step.

Challenge 2 Hard

If a business fails to maintain accurate Final Accounts, what potential consequences might arise? Discuss at least three implications.

💡 Hint: Consider both short-term and long-term impacts on reputation and operations.

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