Grade 7 Quiz Competition 2024 Q. 16 - 20

Which of the following is a common expense for a sole trader?

• Dividend payments

• Salaries of employees

• Interest income

• Depreciation of personal assets

How often should a sole trader prepare their financial statements?

• Once a year

• Monthly

• Quarterly

• All of the above, depending on needs

Which financial statement shows the financial position of a sole trader at a specific point in time?

• Profit and Loss Statement

• Cash Flow Statement

• Balance Sheet

• Income Statement

What is a balance sheet?

• A statement showing cash flow for the year

• A financial statement that shows assets, liabilities, and equity

• A document for tax reporting

• A list of company's expenses for the year

Which of the following is considered a liability on the balance sheet?

• Inventory

• Accounts receivable

• Accounts payable

• Revenue