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- 1. Multiple Choice
All of the following statements regarding the purpose of the Statement of Financial Position are correct except for?
Shows assets, liabilities and owner's equity
It is prepared at a point in time
It can assist users, such as bank managers, with decisions
Shows revenue, expenses and profit
- 2. Multiple Choice
All of the following are included in the Statement of Financial Position, except for?
Profit
Vehicle
Vehicle expenses
Capital
- 3. Multiple Choice
Which of the following statements is correct?
Profit for the year equals the Net Assets
The profit from the Profit or Loss Statement is transferred to the Owner's Equity section of the Statement of Financial Position
Assets plus liabilities equals Net Assets, which is also equal to closing capital
Closing capital = opening bank balance + profit - drawings/
- 4. Multiple Choice
Identify the correct profit calculation.
$10000
$32500
$35000
$45500
- 5. Multiple Choice
Calculate the net assets.
$10150
$28360
$69200
$96560
- 6. Multiple Choice
Calculate the revenue.
$102000
$102700
$102950
$103800
- 7. Multiple Choice
All of the following statements regarding the accounting period concept are correct, except for?
It allows for comparisons from year to year, and with other businesses.
Areas of concern can be identified and recommendations given
It assumes the lifetime of a business is indefinite
Most business complete financial statements at the end of each financial year, while others may also do this more regularly.
- 8. Multiple Choice
Which of the statements about profit is incorrect?
Profit = Revenue - Expenses
Profit includes revenue and other income
A loss occurs if expenses are greater than revenues
Profit at the end of the year is added to the business's bank balance
- 9. Multiple Choice
All of the following are revenues, except for?
Accounts receivable
Dividends received
Rent Revenue
Commission Revenue
- 10. Multiple Choice
All of the following are assets, except for?
Goodwill
Patents
Loans to other businesses
Loans from other businesses
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