Business structures
The accounting equation
The balance sheet
The profit and loss
Random
100
A person who runs a business on their own.
Sole Trader
100
State the accounting equation.
A = L + OE
100
How is the accounting equation arranged for the account for of the balance sheet?
A = L + OE
100
What is revenue?
Revenue is business income.
100
True or false: Assets are things a business owes
False
200
What is the minimum number of partners that a partnership can have?
2
200
What is owners' equity?
The amount the business owes back to the owner.
200
True or false: A balance sheet is also called the Statement of Financial Performance.
False: It is the Statement of Financial Position.
200
Which of the folloiwng is an expense?
electricity, motor vehicle, inventory, rent
electricity and rent
200
True or false: A company is a separate legal person who can be sued.
True
300
Name the business structure that is the most expensive to set-up.
Company
300
Is this correct?
A + L = OE
No
300
Is the following correct?
Statement of Financial Position for A Newman for the period ending 30 June 2021
No - a balance sheet is "as at" not "for the periond ending".
300
Who does the profit a business makes belong to?
The business owner/s.
300
True or false: Debtors and accounts payable are the same thing
False, debtors are accounts receivable.
400
Who pays the tax owed by a company?
The company
400
How can you calculate owners' equity?
OE = A - L
400
What form of the balance sheet is this?
Account form
400
What is wrong with this title?
The date is incomplete.
400
What is a mortgage?
A loan that is secured on an asset.
500
What type of business has Pty Ltd in its title?
A private limited company.
500
How do you calculate liabilities using the accounting equation?
L = A - OE
500
What is wrong with this heading?
Nothing - it is correct. :)
500
What is the profit for this business?
Its a loss of $1,700!!
500
Who owns a public limited company?
The shareholders.
600
A business run under the name of someone else and has the right to use the name and idea of the original business.
Franchise
600
If assets equal $40,000 and liabilities are $35,000 what is the value of owners' equity?
$5,000
600
What is the difference between the account format and the narrative format of the statement of financial position?
The narritive format uses A - L = OE whereas the account form uses A = L + OE.
600
Calculate total revenue using the figures below:
Sales - $67,000, Sales returns - $5,000, interest revenue - $3,000
$65,000
600
Using the fisures below calculate the profit for Sampson's Garage at the 30 April.
$500