Financial Statements

Financial statements are prepared by every business organisation to know the:

The two main purposes of financial statements are to determine the financial result of a specific period and to determine total:

The statement prepared to determine the net income or loss of a business is known as the:

The statement prepared to determine the assets and liabilities of a business is called the:

The Statement of Financial Position was previously known as the:

According to IAS-01, how many types of financial statements are prepared?

Which of the following is NOT one of the five financial statements prescribed by IAS-01?

Notes to financial statements include:

In the secondary stage (Class 9 & 10), the concept and process of preparation of how many parts of financial statements are illustrated?

Financial statements help which of the following groups to make economic decisions?

Financial statements are an important base to evaluate:

Which two items are recorded in the comprehensive income statement?

In a service-providing business, net income is found by:

In a merchandising business, gross profit is found after subtracting:

Operating income in a merchandising business is found after subtracting:

Net income before tax is calculated by:

In sole proprietorship business, income tax payable is treated as the owner's:

In a sole proprietorship comprehensive income statement, net income before tax is considered as net income because:

The first objective of preparing the comprehensive income statement is to know the:

Why should the owner not claim excess of net income?

Analyzing different revenues and expenses helps to know how to:

The Statement of Comprehensive Income for a merchandising business is prepared mainly in how many stages?

In the first stage of merchandising income statement, what is calculated?

In the second stage of merchandising income statement, which figure is calculated?

In the third stage, other revenue is added with operating income and then which is deducted?

For a merchandising business, the main source of operating revenue is:

Which of the following is operating revenue for a merchandising firm?

Which of the following is treated as other income (non-operating) in the income statement?

Which is considered as other (non-operating) income?

Other income includes —

Operating income includes —

Which one is an operating expense?

Which of the following is a non-operating expense?

Which of the following is part of cost of goods sold?

Which item belongs to operating expenses?

Carriage outward is classified under:

Loss on sale of fixed assets is shown as:

Goodwill written off is treated as a/an:

Interest on debenture is classified as:

Bad debts is shown in the income statement as a/an:

Cost of goods sold equals:

Which of the following is NOT included in cost of goods sold?

Which is subtracted in determining the cost of goods sold?

Sales are Tk. 18,000, Beginning inventory is Tk. 2,500, Ending inventory is Tk. 1,700, purchases are Tk. 13,400, and carriage inward is Tk. 700; what is the cost of goods sold?

Which expenses are 'other expenses related with purchase'?

Net purchases are calculated by deducting which item from gross purchases?

Gross profit is —

What is the result of the first step of a comprehensive income statement?

If gross profit is Tk. 70,000, operating expenses are Tk. 35,000, and other income is Tk. 15,000, what is the net income?

What is the reason for net loss despite gross profit being earned?

Net sales is computed as:

Which one is correct for capital and profit?

Insurance premium paid for protecting business assets against destruction is treated as:

Which of the following best defines depreciation?

Depreciation is mainly caused by:

In case of credit sales, the amount confirmed to be not realized from accounts receivable is called:

Bad debt arises due to:

The amount of debts which may not be realized is called:

Provision for bad and doubtful debt is included in:

An allowance for doubtful debts is made when:

Excess money invested as shares of other companies and the dividend received is considered as:

Additional money deposited in bank or invested in profitable ventures gives a benefit called:

The Statement of Changes in Equity is prepared to determine the:

Which items are adjusted with the beginning balance of owner's equity?

In the Statement of Changes in Equity, drawings are:

Income tax in a sole proprietorship Statement of Changes in Equity is:

General reserve in the Statement of Changes in Equity is:

Capital provided by the owner is treated as:

The Statement of Financial Position is prepared to know the financial position at the:

The Statement of Financial Position contains:

From the Statement of Financial Position one can know the proportion of:

Information in the Statement of Financial Position is recorded in how many stages?

Assets in the Statement of Financial Position are divided into how many types?

Which of the following is NOT one of the four asset categories shown on the Statement of Financial Position?

Liabilities are divided into how many types?

Assets and liabilities are summarised in the Statement of Financial Position under how many methods?

In the permanence preference method, which assets are written first?

In the permanence preference method, the order for liabilities is:

The liquidity preference method is:

Where are fictitious assets shown in the Statement of Financial Position?

Fixed assets are those used in the business for:

Which of the following is a fixed asset?

Current assets can be converted into cash within:

Which is a current asset?

Which is a long-term liability?

Which of the following is a current liability?

Advance income (unearned revenue) is shown as a:

In which part of the financial statement does 'Accounts Payable' appear?

In the books of Lina Traders, what does a debit balance of Tk. 500 in the account of Mina & Sons signify?

Preliminary expenses are classified as:

Deferred advertisement is shown as a:

According to the Business Entity Principle, capital provided by the owner is treated as:

Withdrawals made by the owner are treated as:

According to the Going Concern Concept, businesses are assumed to:

Without the going concern assumption, which becomes impossible?

According to the Periodicity Concept, the indefinite life of a business is divided into:

An accounting period is usually:

According to the Accrual Concept, accrued expenses are:

Under the accrual concept, advance income and prepaid expenses are:

According to the Conservatism Principle, net income should be reported as:

Under the conservatism principle, ending inventory is valued at:

According to the Cost Principle, fixed assets are shown each year at:

Cost price of a fixed asset includes:

According to the Consistency Principle, accounting methods should be:

The Materiality Concept refers to using professional judgement to determine which transactions are:

Items like clocks, staple machines and calculators are usually treated at year-end as:

Which principle requires that probable bad and doubtful debts be recorded as expenses?

Which principle ensures comparability of financial statements across periods?

The adjusting entry to record cost of goods sold and ending inventory debits Ending Inventory, Purchase Return and Cost of Goods Sold and credits:

Through the COGS adjusting entry, which two new accounts are created?

If wages outstanding Tk. 500 are found, the comprehensive income statement will include Tk. 500 because of the:

Outstanding wages are shown in the Statement of Financial Position as:

The adjusting entry for outstanding wages of Tk. 500 is:

House rent paid in advance Tk. 800 will be deducted from total house rent and shown as a current:

The adjusting entry for prepaid house rent is:

Which concept supports treating prepaid rent as an asset?

Accrued interest on investment Tk. 600 will be shown as income in the Statement of Comprehensive Income and as ____ in the Statement of Financial Position.

The adjusting entry for accrued interest on investment is:

If rent received Tk. 10,000 includes Tk. 3,000 received in advance for next year, the income to be shown for current year is:

Advance house rent revenue is shown in the Statement of Financial Position as:

The adjusting entry for advance house rent revenue is:

Plant and machinery cost is Tk. 80,000 and depreciation is to be charged at 15% p.a. The depreciation amount is:

The adjusting entry for depreciation is:

In the Statement of Financial Position, depreciation is deducted from the relevant fixed asset as:

With A/R Tk. 50,000, opening allowance for bad debts Tk. 2,000, one debtor's Tk. 1,000 written off and 5% allowance on remaining A/R, the ending allowance is:

With A/R Tk. 50,000, opening allowance Tk. 2,000, Tk. 1,000 written off and 5% on remaining, the bad debts expense charged to the income statement is:

After writing off Tk. 1,000 and deducting ending allowance Tk. 2,450 from A/R Tk. 50,000, the net A/R shown in the Statement of Financial Position is:

In the activity, beginning allowance for bad debts is Tk. 4,000, A/R Tk. 60,000 and 10% may not be collectable. The ending allowance is:

In the same activity, the bad debts expense to be shown in the income statement is:

When opening allowance for bad debt exceeds bad debts written off plus the new allowance, the difference is treated in the income statement as:

The formula for net profit ratio is:

Net income to capital employed ratio is:

Capital employed is calculated as:

Current ratio is:

Which of the following is the formula for calculating the liquidity ratio?

The standard value of current ratio is:

The standard value of liquidity ratio is:

Why are inventory and prepaid expenses deducted in the liquidity ratio?

Increase in profit ratios indicates:

With Rani Enterprises: Net income Tk. 8,000 and Sales Tk. 1,00,000. The net profit ratio is:

With Rani: Net income Tk. 8,000 and Capital employed Tk. 60,000. The return on capital employed is:

With Rani: Current Asset Tk. 9,000 and Current Liabilities Tk. 5,000. The current ratio is:

With Rani: Current Asset Tk. 9,000, Inventory Tk. 1,000 and Current Liabilities Tk. 5,000. The liquidity ratio is:

With Sreelekha Enterprises: Net income Tk. 6,000 and Capital employed Tk. 80,000. Return on capital employed is:

According to the comparison, whose financial condition is better?

In Akon & Associates, total income for the year ended 31 December 2025 is:

Office rent in Akon & Associates is Tk. 2,70,000 with 3 months due. The rent due amount is:

Depreciation @ 10% on office equipment Tk. 2,20,000 in Akon & Associates is:

Net income of Akon & Associates is:

Net sales of Arthi & Sons (Sales Tk. 2,90,000 less return Tk. 4,000) is:

Cost of goods sold of Arthi & Sons is:

Gross profit of Arthi & Sons is:

Operating income of Arthi & Sons is:

Net income of Arthi & Sons is:

Owner's equity (31/12/2025) of Arthi & Sons is:

Total assets of Arthi & Sons is:

Net sales of Arpon Traders (Sales Tk. 1,57,000 less return Tk. 7,000) is:

Cost of goods sold of Arpon Traders is:

Gross profit of Arpon Traders is:

Net income of Arpon Traders is:

Owner's equity (31/12/2025) of Arpon Traders is:

Net sales of Showkat Traders is:

Cost of goods sold of Showkat Traders is:

Gross profit of Showkat Traders is:

Operating income of Showkat Traders is:

Net income of Showkat Traders is:

Half of advertisement Tk. 7,000 to be deferred — the deferred amount is:

Lease property (5 years) Tk. 30,000 — yearly written-off amount is:

Equity (31/03/2025) of Showkat Traders is:

In Farhana Enterprise, after adjusting drawings of goods Tk. 1,000 and return outward Tk. 2,000, net purchase is:

Cost of goods sold of Farhana Enterprise is:

Net sales of Farhana Enterprise is:

Gross profit of Farhana Enterprise is:

Operating income of Farhana Enterprise is:

Net income of Farhana Enterprise is:

Owner's equity (31/03/2025) of Farhana Enterprise is:

Insurance premium is paid till 30 September 2025 (one year). The prepaid amount on 30 June 2025 (3 months out of 12) on Tk. 1,500 is:

After writing off bad debts Tk. 2,000, the remaining A/R for Farhana is Tk. 14,000. The ending allowance @ 10% is:

Surplus of allowance for doubtful debts in Farhana (opening 2,500 − bad debts 2,000 − ending 1,400) reduces operating expense by:

In Bishwas Audit Firm, services worth Tk. 30,000 rendered out of unearned service revenue should:

In Bishwas Audit Firm, office rent paid for 9 months means rent for ____ months is treated as outstanding.

In Bishwas Audit Firm, additional capital Tk. 1,00,000 brought in but not recorded should be:

In Ahmed Brothers, ending inventory has cost Tk. 1,20,000 and market value Tk. 1,10,000. Per conservatism principle, value used is:

In Ahmed Brothers, advertisement paid for 5 years — the prepaid portion to defer is:

In Alam Traders, insurance premium for 15 months at Tk. 30,000 — the prepaid portion (3 months) is:

In Alam Traders, life insurance premium Tk. 21,000 should be treated as:

In Masnoon Enterprise, goods worth Tk. 5,000 distributed free as samples should be treated as:

In Masnoon Enterprise, two notes of Tk. 200 each destroyed (not recorded) means notes receivable reduces by:

In Maaisha Traders, a check Tk. 10,000 given for showroom rent not recorded should:

In Maaisha Traders, depreciation @ 5% on furniture and machinery is charged on:

In the activity table — COGS Tk. 7,800 and Operating expenses Tk. 1,300 with profit unknown — this exercise tests the relation:

In the activity, given Capital employed Tk. 1,00,000 and Net income Tk. 18,000, return on capital employed is:

In the activity, Sales Tk. 1,20,000 and Net income Tk. 18,000 — net profit ratio is:

In the activity, Current Asset Tk. 35,000 and Current liabilities Tk. 20,000 — current ratio is:

In the activity, after deducting ending inventory Tk. 5,000 from current assets Tk. 35,000, liquidity ratio is:

Why are financial statements prepared?

The Statement of Changes in Equity reflects changes due to:

The accumulated depreciation account is shown:

Without the Going Concern Concept, depreciation would:

The basis of preparation of the comprehensive income statement is: