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MCQ Practice Single Best Answer Topic: Elements of Accounting

Q Which one of the following items is not found on a Balance Sheet?

Question ID
#24239
Subchapter
Elements of Accounting
Action
Choose one option below

Choose Your Answer

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  • A Cash ✔ ✖
  • B Gross Profit ✔ ✖
  • C Assets ✔ ✖
  • D Liabilities ✔ ✖
Correct Answer: B

Explanation

The correct answer is:

B. Gross Profit ✅

👉 Explanation:

  • A Balance Sheet shows the financial position of a business at a point in time, with three main elements:

    • Assets (Cash, Inventory, Property, etc.)

    • Liabilities (Loans, Creditors, etc.)

    • Equity/Capital

  • Gross Profit is not shown on the Balance Sheet.

    • It appears in the Trading/Profit & Loss Account (Income Statement), as it measures the difference between Sales and Cost of Goods Sold (COGS).

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