Practice Format Of Balance Sheet (17.5.3) - Final Accounts (Trading, Profit & Loss Account and Balance Sheet)

Practice: Format of Balance Sheet

Lesson 17.5.3Final Accounts (Trading, Profit & Loss Account and Balance Sheet)

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9 questions

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6 sample questions

Question 1.
What are the three main components of a Balance Sheet?
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Think about what a business owns and owes.
Question 2.
What principle states that Assets must equal Liabilities plus Owner's Equity?
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Remember the acronym ALOE!
3Question 3.
What is the primary purpose of a Balance Sheet?
- To show profits
- To summarize financial position
- To display cash flows
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Think about what a Balance Sheet summarizes.
4Question 4.
True or False: Liabilities are always greater than assets in a well-run business.
- True
- False
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Consider what represents a financially healthy company.
Question 5.
A company reports ₹1,500,000 in assets, ₹800,000 in liabilities, and you find they paid off a ₹200,000 long-term loan. What will be the new owner's equity?
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Make sure to recalculate liabilities after the loan payment.
Question 6.
If a company's original assets increased by 20% but liabilities increased by 10%, how would you express the change in owner's equity?
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Think about growth rates and how they impact both sides of the equation.

5 more questions in this section. Enroll free to practise them all.