Financial Statements (Final Accounts)

What is a Sole Proprietorship?

• Business owned by president

• Business owned by several companies

• Business owned by one person

• Business owned by a company

Which of the following accurately represents the statement of financial position for a sole-trader?

• assets = liabilities - capital

• capital = assets + liabilities

• assets = liabilities + capital

• liabilities = capital - assets

What is shown as a liability in a statement of financial position?

• bank overdraft

• fixtures and fittings

• inventory

• prepaid rent

Income statements are also known as __________

• Statement of financial Position

• Profit and loss account

• Journal

• Double column Cash book

Balance Sheet is also known as _________

• Profit and loss Account

• Petty Cash Book

• Earnings Account

• Statement of Financial Position

Balance sheet contains which of the following information

• Assets

• Debtors

• Journal

• Creditors