quizzunit11

1.A business's assets consist of its cash investments and property (buildings, machines, and so on),

 

and .................

(debt) - amounts of money owed by customers for goods or services purchased on

credit.

 

 

 

2.

Liabilities consist of all the money that a company will have to pay to someone else, such as

taxes, debts, interest and mortgage payments, as well as money owed to .................

(supply) for

purchases made on credit, which are grouped together on the balance sheet as creditors.

3.

Part of the profit is paid to the government in taxation, part is usually distributed to shareholders

as a dividend, and part is retained by the company to finance further growth, to .................

(pay)

debts, to allow for future losses, and so on.

 

 

4.

The profit and loss account shows revenue and .................

(expend). It gives figures for total

 

sales or turnover - the amount of business done by the company during the year -, and for costs and overheads.

Applications of funds include the purchase of fixed or financial assets, the payment of dividends

 

and the .................

(pay) of loans, and, in a bad year, trading losses.

Management .................(analysis) the financial statements and use them as a basis for allocating financial resources.

Small business ................ (own) could keep their own books and make decisions based on the information found there.

8.

The cost principle generally requires that the balance sheet should report long-lived assets at

 

cost minus accumulated ................. (depreciate).

The financial statements are to reflect the basic accounting principles as well as the detailed accounting .................(pronounce) of the Financial Accounting Standards Board.

Financial statements prepared for a period of one year are called annual financial statements and are required to be audited by an  .................

(audit).