ACC4034-Week2

Which of the following represents the accounting equation?

• Assets + Liabilities = Capital

• Assets + Capital = Liabilities

• Assets = Liabilities + Capital

• None of the above

What term best describes an overdrawn bank balance found on the Statement of Financial Position?

• Current liability

• Current asset

• Non-current asset

• Non-current liability

What term best describes a trade receivables balance found on the Statement of Financial Position?

• Current liability

• Non-current asset

• Current asset

• Non-current liability

Which section of the Statement of Financial Position would you find the drawings balance?

• Current asset

• Current liability

• Capital

• Non-current liability

What term best describes a mortgage found on the Statement of Financial Position?

• Current liability

• Current asset

• Non-current asset

• Non-current liability

What term best describes the cash in hand balance found on the Statement of Financial Position?

• Current liability

• Non-current asset

• Current asset

• Non-current liability

Which section of the Statement of Financial Position would you find the furniture and fittings?

• Current asset

• Current liability

• Capital

• Non-current asset

If, at the year end, the total assets of a business were £189,000 and the business liabilities were £126,000, what would be the owner’s capital as at that date?

• £63,000

• £126,000

• £189,000

• £315,000

If a business has total assets worth £75,488 and capital of £47,692, what is the total liabilities figure?

• £23,846

• £37,744

• £123,180

• £27,796

Which ONE of the following statements correctly describes the contents of the Statement of Financial Position?

• A list of ledger balances shown in debit and credit columns

• A list of all the assets owned, all the liabilities owed by a business and capital introduced by the owner at one moment in time.

• A record of income generated and expenditure incurred over a given period

• A record of the amount of cash generated and used by a company in a given period