FINANCIAL STATEMENTS

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 meaning of Gross profit?

• profit from providing services to customers

• profit from providing money to customers

• profit from providing goods to customers

• profit from providing loans to customers

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 Profit for the year?

• is the overall final money earned from operating the business

• is the overall final income earned from operating the business

• is the overall final position earned from operating the business

• is the overall final profit 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

The main source of revenue for a trading business

• Sales
• Dividends
• Fees received
• Capital

Stock at the beginning of the year

• Opening Inventory
• Sales
• Purchases
• Drawings

Goods returned to suppliers that decrease Cost of goods sold

• Sales returns
• Credit purchases
• Purchase returns

Goods purchased during the year

• Sales
• Inventory
• Purchases