Financial Statements

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

All of the following are included in the Statement of Financial Position, except for?

• Profit

• Vehicle

• Vehicle expenses

• Capital

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/

Identify the correct profit calculation.

• $10000

• $32500

• $35000

• $45500

Calculate the net assets.

• $10150

• $28360

• $69200

• $96560

Calculate the revenue.

• $102000

• $102700

• $102950

• $103800

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.

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

All of the following are revenues, except for?

• Accounts receivable

• Dividends received

• Rent Revenue

• Commission Revenue

All of the following are assets, except for?

• Goodwill

• Patents

• Loans to other businesses

• Loans from other businesses