The main source of information about a limited liability entity is:
the annual report and accounts
1 of 15
The financial statements of a business are usually prepared on the assumption that:
it will continue for the foreseeable future
2 of 15
In applying the prudence concept, the accountant ensures that:
all possible costs and losses are included
3 of 15
The comparability concept:
is based on the principle of uniformity of accounting treatment of like items
4 of 15
The financial performance of a business is reflected in its:
income statement
5 of 15
The financial position of a business is reflected in its:
statement of financial position
6 of 15
The statement of financial position may be represented by the equation:
assets = equity + liabilities
7 of 15
The correct calculation of cost of sales requires the deduction of:
closing inventory
8 of 15
The accruals concept requires the income statement to be prepared on the assumption that:
all revenue has been matched with associated costs and expenses
9 of 15
If gross profit is £22,500 and the cost of sales is £52,500, sales revenue is:
£75,000
10 of 15
f sales revenue is £600,540 and opening inventory is £20,025 and purchases are £475,505 and closing inventory is £25,150, then gross profit is:
£130,160
11 of 15
If opening inventory is £24,025 and purchases are £525,675 and closing inventory is £45,280, then cost of sales is:
£504,420
12 of 15
If gross profit is £60,000 and other income is £365 and expenses are £45,150, then operating profit
£15,215
13 of 15
During the year a business purchases 300 items at £6 each, sells 260 of them for £10 each and has 10 items stolen. The value of the closing inventory is:
£180
14 of 15
Using the accounting equation, if current assets are £200,300 and non-current assets are £1,235,345 and liabilities are £334,297, then equity is:
£1,101,348
15 of 15
Other cards in this set
Card 2
Front
The financial statements of a business are usually prepared on the assumption that:
Back
it will continue for the foreseeable future
Card 3
Front
In applying the prudence concept, the accountant ensures that:
Back
Card 4
Front
The comparability concept:
Back
Card 5
Front
The financial performance of a business is reflected in its:
Comments
No comments have yet been made