3.4 Final Accounts
Ekunda Grocers earns $200,000 in sales, has expenses of $80,000 and cost of goods sold amount to $90,000. What is the firm's gross profit?
$110,000
What is the next book value of the computers after two years?
$147,000
Calculate the cost of sales from the following information: cost of stock per unit = $20
$15,000
What is the firm's total dividend payout to shareholders?
$15,000
Use the following information to work out the net profit before tax: interest payable = $1,000
$19,000
Suppose a firm has opening stock of $5,000, purchases of $6,000, and costs of goods sold valued at $8,000. What is the value of its closing stock?
$3,000
What is the firm's net profit?
$50,000
What would the annual depreciation changer if Barragan Consultancy had used the straight line depreciation method for the computers?
$60,000
What is the girls gross profit?
$75,000
Calculate the value of net current assets from the following information: land = $50,000
($5,000)
If a firm buys a delivery vehicle with cash, how will this be reflected in the balance sheet?
An increase in the value of fixed assets with a corresponding fall in the value of cash
An increase in the value of certain fixed assets, such as land and buildings, is known as
Appreciation
Suppliers would be interest in the final accounts of a business in order to
Assess business profitability and performance
Which of the following does not usually apply to fixed assets?
Assets that generate cash sales for a firm
In which final account would you fin shareholders' funds?
Balance sheet
Which of the following is not considered as a guiding principle to accounting practices?
Bureaucracy
Which i the following is not an intangible asset?
Cash deposits at the bank
A business is not legally obliged to report which of the following?
Cashflow forecast
The publication of final accounts includes the following, except for the
Cashflow forecast
Expenses do not include
Cost of sales
Current assets do not include
Creditors
Which of the following is most likely to be a long-term business liability?
Debentures
Which of the following is not a current liability?
Debtors
Which of the following is not considered to be a fixed asset?
Debtors
Which of the following is not be classed as an expense in the profit and loss account?
Direct costs
Which of the following cannot be applied to gross profit?
Expressed as a percentage to allow for historical and inter-firm comparisons
Fixed assets include all of the following except
Finished goods for sale
Owner's equity does not include the calculation of
Fixed assets
Be assets is calculated by
Fixed assets + working capital - long-term liabilities
If expenses are greater than gross profit for a business, then the business
Has made an overall loss
Expenses are the
Indirect costs of trading activities
The appropriations account does not show
Interest charges
Interest payable means
Interest paid to financial lenders
Which statement cannot be applied to goodwill?
It includes the value of labor such as their market value if they were headhunted
Physical assets tend to depreciate over time, Which asset below does not generally follow this trend?
Land
Money owed to other people or organizations is shown in a balance sheet as
Liabilities
The profit and loss account
List all revenue and expenditure of a business over a trading period
Which of the following items does not appear in a profit and loss account?
Machinery and equipment
Which of the following equations is found in a balance sheet of a public limited company?
Net assets = share capital + retained profit
Which of the following items is not found in a balance sheet?
Net profits before interest and tax
Intangible assets are
Non-physical fixed assets that ass value to a business
Which item appears on the balance sheet of a sole trader?
Owner's equity
In which account would overheads and expenses appear?
Profit and loss account
A patent
Provides legal protection for an inventor to prevent others from copying it
Intangible assets include all of the following, except
Services
The main purpose of constructing a balance sheet is to
Show the value of a business at a particular point in time
The trading account gives details of
The cost of goods sold
On a profit and loss account, dividend represent
The portion of net profits after interest and tax that is distributed to shareholders
Which statement about tangible assets is true?
They represent the use of funds of a business
A firm can increase its gross profit by
Using cheaper suppliers
