Understanding Business and Financial Information Quiz

What is the first step in completing the sales working document?

• Find out the credit arrangements

• Work out the actual sales figures

• Bring forward outstanding trade receivables

• Make a note of the trade receivables c/f

Where are outstanding trade payables and receivables recorded in the statement of financial position?

• Current assets

• Capital

• Reserves

• Liabilities

What does the cash flow statement represent?

• The flow of cash for a given period

• The profit/loss a business is making

• The assets contained in a business

• The funding of a business by capital, reserves, and liabilities

Where is the value of retained profit recorded in the statement of financial position?

• Current assets

• Capital

• Reserves

• Liabilities

What is the second step in completing the purchases working document?

• Find out the credit arrangements

• Work out the actual purchases figures

• Bring forward outstanding trade payables

• Make a note of the trade payables c/f

If a business is new, will there be any trade payables or receivables brought forward?

• Yes

• No

• Not enough information

• Depends on the business type

What does the income statement represent?

• The flow of cash for a given period

• The profit/loss a business is making

• The assets contained in a business

• The funding of a business by capital, reserves, and liabilities

Where is the value that is transferred from the cash flow statement to the statement of financial position placed?

• Current assets

• Capital

• Reserves

• Liabilities