Random
What exactly is opening stock?
Classify bad debts
Finance expense
How do you calculate Net Sales?
Sales
less sales returns
less discount allowed
Calculate the figure for liabilities if
Assets = $150 000
Owners equity = $60 000
L = $90 000
Classify delivery vehicle expense
Selling expense
What business structure pays ASIC fees?
Public company
What does ASIC and ATO stand for?
ASIC = Australian Securities Investments Commission
ATO = Australian Taxation Office
Who pays income tax?
Income tax:
- sole trader and partnership
What are two examples of finance expenses?
Bad debts
Bank fees
Interest expense
Why should someone convert to a partnership from a sole trader? (2 reasons)
- can expand more
- shared capital
- shared workload and responsibilities
How can you improve a working capital ratio?
decrease current liabilities (convert some to non-current liabilities) or increase current assets.
Is it good or bad if return on equity is 3% when bank interest is also 3%?
Bad - owner can go to the bank to get the same return without doing any of the work.
What is a trial balance?
A trial balance shows a summary of accounts for a business including assets, liabilities, revenues, expenses, owners equity.
What is the benchmark for working capital ratio?
2:1
How do you calculate statement of changes in equity?
opening capital
add net profit/loss
less drawings= capital (closing)