BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ refers to the final section of a Profit and loss account and shows how the net profit after interest and tax is distributed, i.e.dividends to shareholders and/or retained profit kept by the business.
A
A balance sheet
B
The appropriation account
C
Cost of goods sold
D
Retained profit
Explanation: 

Detailed explanation-1: -Final accounts include a trading account which is prepared for calculating Gross Profit. The balance sheet shows the entity’s assets and liabilities at the end of the period, and the statement of profit and loss shows the net profit made during the time.

Detailed explanation-2: -the profit and loss account (the income statement) the balance sheet

Detailed explanation-3: -Retained earnings are a type of equity and are therefore reported in the shareholders’ equity section of the balance sheet. Although retained earnings are not themselves an asset, they can be used to purchase assets such as inventory, equipment, or other investments.

Detailed explanation-4: -Retained profits are also known as retained earnings. Large companies will often pay out a portion of profits (a dividend) to owners and shareholders. Smaller companies may also pay out dividends. Retained profit goes on your balance sheet in the equity section.

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