FInancial Statements

The financial statement that reports the assets, liabilities, and shareholders equity at a specific date is the:

• Balance sheet

• Income Statement

• Trial Balance

• General Ledger

Cash at bank is an example of a

• Current asset

• Non-current asset

• Equity

How to find Net Profit/(Net Loss)?

• Opening Capital + Drawings

• Closing Capital - Opening Capital + Drawings

• Closing Capital - Drawings

• Opening - Drawings - Closing Capital

A balance sheet shows:

• how much gross profit it has

• how much net profit it has

• how much a business owns and owes

Identify the three sections of a Balance Sheet

• Revenue

• Assets

• Equity

• Expenses

• Liabilities

The Income Statement has the following sections

• Assets

• Expenses

• Liabilities

• Revenue

• Equity

What is the purpose of the Balance Sheet?

• inform stakeholders the assets and liabilities of business

• provides information on how resources are obtained and used and the claim by the owner on the net assets of the business at a point in time.

• provides information on how resources are obtained and used in the business at a point in time.

• inform stakeholders the owner's equity of business

What is the equation to calculate Gross profit?

• Sales revenue + Income - Expenses

• (Sales revenue - Sales returns) - Cost of sales

• (Sales revenue + Cost of sales) - Sales returns

• (Sales revenue + Sales returns) - Cost of sales

What are the steps to calculate Net Profit for the year?

• Gross profit + Income - Capital

• Gross profit + Income + Expenses

• Gross profit + Income - Expenses

• Gross profit - Income - Expenses

Calculate the amount for current liabilities.

Land $1 000

5 year loan $10 000

Trade payables $6 000

Bank overdraft $700

• $11 000

• $16 000

• $16 700

• $6 700