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Profit and loss accounts - short answer questions


Question 1

Define the term 'depreciation' and explain why it is recorded in a P&L Account.

Question 2

Define the term 'appropriation account' and explain what it shows.

Question 3

Explain whether it is possible for a dividend ever to be bigger than the profit before tax.

Question 4

Can gross profit be positive and trading profit before tax negative?

Question 5

Explain whether profit is always in the form of cash that is available to spend.