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WorksheetsFinancial
Total questions: 20
Worksheet time: 10mins
What is the purpose of preparing the Statement of Financial Performance?
inform stakeholders the profitability of business
inform stakeholders the nature of business
inform stakeholders the income and expenses of business
inform stakeholders the size of business
What is the purpose of the Statement of Financial Position?
inform stakeholders the assets and liabilities of business
provides information on how resources are obtained and used and the claim by the owner on the net assets of the business at a point in time.
provides information on how resources are obtained and used in the business at a point in time.
inform stakeholders the owner's equity of business
What is the equation to calculate Gross profit?
Sales revenue + Income - Expenses
(Sales revenue - Sales returns) - Cost of sales
(Sales revenue + Cost of sales) - Sales returns
(Sales revenue + Sales returns) - Cost of sales
What is the meaning of Gross profit?
profit from providing services to customers
profit from providing goods to customers
profit from providing money to customers
profit from providing loans to customers
What is the meaning of Profit for the year?
is the overall final income earned from operating the business
is the overall final profit earned from operating the business
is the overall final money earned from operating the business
is the overall final position earned from operating the business
What are the steps to calculate Profit for the year?
Gross profit + Income - Capital
Gross profit + Income - Expenses
Gross profit + Income + Expenses
Gross profit - Income - Expenses
Which of the following are items of Expenses?
salaries, utilities, inventory, discount allowed
salaries, utilities, insurance, discount allowed
salaries, utilities, interest received, discount allowed
salaries, utilities, loan, discount allowed
What is the difference between non-current assets and current assets?
NCA provide benefits that are used within one financial period but CA provide benefits that last beyond one financial period
NCA provide benefits that last beyond one financial period but CA provide benefits that are used within one financial period
NCA are easily converted to cash but CA are not easily converted to cash easily
NCA are not loans but CA are loans
What is the accounting equation used in the Statement of Financial Position?
Total assets = Total Income + Equity
Total assets = Total liabilities + Equity
otal assets = Total Loan + Equity
Total assets = Total Liabilities - Equity
Asset, liability and equity accounts are extended to
balance sheet section
retained earnings
income statement section
trial balance
Revenue and expense accounts are extended to
retained earning statement
income statement
balance sheet section
accounts payable section
How does net loss affect owner's equity?
increases
no change
decreases
indirectly
Mistakes in the General Journal are corrected this way before posting?
cross out the error with a single line
erase it
make a correcting entry
start over on a new sheet
Transferring Information from the general journal to the ledger accounts is known as________?
posting
extending
copying
calculating
When revenue > expenses, then there is a
Net Loss
net income
mistake in the math
transposition error
The financial statement that reports the assets, liabilities, and shareholders equity at a specific date is the:
Balance sheet
Trial Balance
Income Statement
General Ledger
Cash at bank is an example of a
Current asset
Equity
Non-current asset
A balance sheet shows:
how much gross profit it has
how much a business owns and owes
how much net profit it has
The Income Statement has the following sections
Expenses
Assets
Liabilities
equity
What is the purpose of the Balance Sheet?
inform stakeholders the assets and liabilities of business
provides information on how resources are obtained and used and the claim by the owner on the net assets of the business at a point in time.
provides information on how resources are obtained and used in the business at a point in time.
inform stakeholders the owner's equity of business
