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JAMB Accounting 2021 Objective — Question 5

Question 5 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2021 Objective paper, with the correct answer and a full explanation.

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5. The difference between trading account and profit and loss account is later used to determine a. Net profit b. Gross profit c. Net book value d. Total sales

  • A. Net profit
  • B. Gross profitCorrect
  • C. Net book value
  • D. Total sales

Explanation

The trading account is used to determine gross profit/loss, while the profit and loss account is used to determine net profit/loss.

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