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O-LevelAccountingPreparation of financial statements7707/11 · May/June 2021 · Q181 Mark

Which items would appear in the income statement of a service business?

Agross profit (✓), profit for the year (X), surplus (X)
Bgross profit (✓), profit for the year (X), surplus (✓)
Cgross profit (X), profit for the year (✓), surplus (X)
Dgross profit (X), profit for the year (X), surplus (✓)

✓ Correct answer

C: gross profit (X), profit for the year (✓), surplus (X)

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About this question

Topic
Preparation of financial statements, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2021 Paper 1 Variant 1, question 18.

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