POA - 4th

Which of the following statements is incorrect?

• Asset + Capital = Liabilities

• Capital = Assets - Liabilities

• Liabilities + Capital = Assets

• Liabilities = Assets - Capital

Which of the following is not an sset?

• Cash at bank

• Premises

• Stock

• Creditors

Which of the following is a liability?

• Buildings

• Debtors

• Loan from J. Henry

• Equipment

Which of the following is incorrect?

• Asset Liability Capital

  $18270 $5,290 $12,980

• Asset Liability Capital

  $ 9,340 $3,120 $6,220

• Asset Liability Capital

  $15,160 $6,380 $7,780

• Asset Liability Capital

  $12,230 $1,390 $10,840

Which of the following best describes the meaning of 'Sales'?

• Items sold for cash or on credit

• Assets sold on credit

• The items bought previously

• Sale of items previously included in 'Purchases'

Which of the following should not be called 'Purchases'?

• Purchase of a motor van for use by a business

• Goods bought on credit

• Goods bought for cash

• Items bought for the prime purpose of resale

Which of the following is correct?

• Capital is reduced by loss

• Profit does not affect capital

• If there is no profit there is no capital

• A loan received will reduce capital

Which of the following best describes a trial balance?

• Is the final account in the books

• Shows all the asset balances

• Is a list of balances on the books

• Discloses the financial position of a business

When should the trial balance totals differ?

• Only when it is drawn up by an accountant

• When drawn up before the profit and loss account is prepared

• If drawn up halfway through the financial year

• Never

The trading and profit and loss can be done using ____ formats.

• 1

• 3

• 2

• 4