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WorksheetsKế CFAB - Chap 2
Total questions: 9
Worksheet time: 5mins
The capital of a sole trader would change as a result of:
A credit customer paying by cheque
Raw materials being purchased on credit
Non-current assets being purchased on credit
Personal petrol being paid for out of the business’ petty cash
A business can make a profit and yet have a decreased bank balance. Which of the following might cause this to happen?
The sale of non-current assets at a loss
The charging of depreciation in the statement of profit or loss
The lengthening of the period of credit given to customers
The lengthening of the period of credit taken fromsuppliers
The purpose of the financial statements that lists an entity’s total assets and total capital/liabilities is to show:
The financial performance of the entity over a period of time
The amount of the entity could be sold for in liquidation
The amount the entity could be sold for as a going concern
The financial position of the entity at a particular moment in time
A sole trader is £5,000 overdrawn at her bank and receives £1,000 from a credit customer in respect of its account.
Which element(s) of the accounting equation will change due to this transaction?
Assets and liabilities
Liabilities only
Assets only
Assets, liabilities and capital
A sole trader purchases goods on credit.
Which element(s) of the accounting equation will change due to this transaction?
Assets and liabilities
Assets and capital
Capital and liabilities
Assets only
A sole trader borrows £10,000 from a bank.
Which element(s) of the accounting equation will change due to this transaction?
Assets and liabilities
Assets and capital
Capital and liabilities
Assets only
A sole trader sells goods for cash for £500 which had cost £300.
Which element(s) of the accounting equation will change due to this transaction?
Assets and liabilities
Assets and capital
Capital and liabilities
Assets only
A sole trader increases the business’s number of motor vehicles by adding his own car to its fleet.
Which element(s) of the accounting equation will change due to this transaction?
Assets only
Capital only
Assets and capital
Assets and liabilities
Which three of the following are elements of financial statements as identified by the IASB’s Conceptual Framework?
Income
Expenses
Profits
Losses
Equity
