O-LevelAccountingPreparation of financial statements7707/13 · Oct/Nov 2020 · Q181 Mark

Which items will not be shown in an income statement prepared for a service business? 1 cost of sales 2 gross profit 3 profit for the year 4 wages paid to employees

A1 only

B1 and 2

C2 and 4

D3 and 4

✓ Correct answer

B: 1 and 2

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Topic: Preparation of financial statements, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2020 Paper 1 Variant 3, question 18.

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