Accounting 1

Which of the following are common business objectives?

• Profit maximization

• Survival

• Income Statement

• Market share

• Book-keeping

The total income for a business in 2023 is $78 000. For the same period, the total expenses is $32 000. Calculate the profit for 2023.

(a)  

Which of the following is not a reason why the measurement of profit is important for a business?

• To calculate tax payable

• To encourage investors into business

• To obtain credit from suppliers

• To help decide whether to allow credit to customers

Which of the following is not normally considered to be part of management accounting?

• Setting targets

• Producing budgets

• Analysing results

• Entering transactions in accounts

Use the Accounting Equation for the following. Total assets are $89 000 and total liabilities are $23 500. Calculate the value of the owner's equity.

(a)  

Liabilities total $11 200 and the owner's equity is valued at $47 500. Calculate the value of the business assets.

(a)  

Use the following information to calculate the value of the owner's equity. Equipment is $560. Bank is $1120. Bank loan is $260.

(a)  

Which of the following is not a liability?

• Trade payables

• Trade receivables

• Bank loan

• Mortgage

Use the following information to calculate the value of the owner's equity. Equipment $454, Inventory $131, Cash $654, Trade payables $646.

• $1239

• $646

• $876

• $593

Which of the following is a possible objective of a business?

• Book-keeping

• Financial statements

• Payment of tax

• Breaking even