Financial Statements of Limited Companies

Financial Statements of Limited Companies

Open Ended

What is a sole trader?

What is a sole trader?

A sole trader business is owned and managed by on person.

What is limited company?

What is a limited company?

It is a business with a separate legal identity from it's owners. The owners' liability is limited to the amount of money they have invested in the business.

Multiple Choice

Which of the following is a list of three of the most common types of business ownership in The UK?

• PLCs, Private Limited and Cooperatives

• Franchises, Partnerships, PLCs

• Sole traders, Partnerships and Limited Companies

• Shareholders and Stakeholders

Multiple Choice

Which of the following statements is based on the accounting equation?

• Statement of profit or loss

• Statement of financial position

• Income statement

• Statement of changes in Equity

What are the other names for:

The statement of profit or loss and the statement of financial position?