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WAEC Financial Accounting 2013 Question 50

Question 50

Final Accounts of a Sole Trader

A trading account is prepared to disclose the

  1. A.net profit or loss for the year.
  2. B.gross profit or loss for the year.
  3. C.accumulated fund for the year.
  4. D.gross profit on manufacturing.
Show the answer and explanation

Answer: B (gross profit or loss for the year.)

Explanation

The trading account compares sales with cost of goods sold to show the gross profit or gross loss.