Multiple choice general knowledge

The Trading A/c gives you which of the following?

  1. Net Profit/Loss

  2. Gross Profit/Loss

  3. Total Assets

  4. Total Liabilities

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Trading Account is specifically designed to calculate Gross Profit or Gross Loss, which is the difference between net sales and cost of goods sold. Net Profit/Loss is calculated in the Profit and Loss Account after deducting all expenses. Total Assets and Liabilities appear in the Balance Sheet, not Trading Account.