Incomplete records

Which method is commonly used to estimate the opening capital in incomplete records?

• Net Worth Method
• Single Entry Method
• Adjusted Trial Balance Method
• Cash Flow Method

Which financial statement is primarily reconstructed to ascertain profit or loss?

• Cash Flow Statement
• Statement of Financial Position
• Income Statement
• Statement of Changes in Equity

When using the Net Worth Method, which formula is used to calculate the closing capital?

• Opening Capital + Drawings - Profit
• Opening Capital + Profit - Drawings
• Opening Capital - Profit + Drawings
• Opening Capital + Loans - Drawings

What is the primary limitation of using incomplete records?

• Lack of accuracy in financial data
• Complexity of preparation
• Overstated revenue figures
• Excessive reliance on software

In incomplete records, which term describes the difference between the total assets and total liabilities?

• Net Income
• Net Worth
• Gross Profit
• Net Cash Flow

What is the primary reason for businesses maintaining incomplete records?

• To comply with auditing standards
• To simplify bookkeeping
• To minimise tax liabilities
• To enhance data accuracy

Assuming the sales price is £120, identify the cost price assuming mark up is 22%

• 93.60

• 98.36

• 78.15

• 98.37