Drawing tables

Question 1

What are the key components of a statement of profit and loss? (9)

Answer 1

-Revenue
-Costs of sales
-Gross profit
-Operating expenses
-Operating profit
-Finance cost
-Profit before tax
-Tax expense
-Net profit / (loss)

Question 2

What are the key categories of a statement of financial position? In correct order (9)

Answer 2

Assets
-Current assets
-Non-Current assets
-TOTAL Assets

Equity

Liabilities
-Current liabilities
-Non-current liabilities

TOTAL Equity and Liabilities

Question 3

Where does the following go on a Statement of financial position:

Property, Plant and equipment

Answer 3

Non current assets

Question 4

Where does the following go on a Statement of financial position:

Intangible assets

Answer 4

Non-current assets

Question 5

Where does the following go on a Statement of financial position:

Inventories

Answer 5

Current assets

Question 6

Where does the following go on a Statement of financial position:

Trade recievables

Answer 6

Current assets

Question 7

Where does the following go on a Statement of financial position:

Prepayments

Answer 7

Current assets

Question 8

Where does the following go on a Statement of financial position:
Cash

Answer 8

Current assets

Question 9

Where does the following go on a Statement of financial position:
Share capital

Answer 9

Equity

Question 10

Where does the following go on a Statement of financial position:

Share premium

Answer 10

Equity

Question 11

Where does the following go on a Statement of financial position:
Retained earnings

Answer 11

Equity

Question 12

Where does the following go on a Statement of financial position:
Long-term borrowing

Answer 12

Non-current liabilities

Question 13

Where does the following go on a Statement of financial position:
Trade payables

Answer 13

Current liabilities

Question 14

Where does the following go on a Statement of financial position:
Accruals

Answer 14

Current liabilities

Question 15

Where does the following go on a financial statement:

Trade Receivables

Answer 15

Current assets

Question 16

Where does the following go on a Statement of financial position:
Short-term borrowing

Answer 16

Current liabilities

Question 17

What goes at the top of a statement of financial position?

Answer 17

‘Statement of Financial Position as at XX’
£ £

Question 18

How is the following recorded as a DEB transaction:

Increase in Assets

Answer 18

Debit

Question 19

How is the following recorded as a DEB transaction:

Decrease in ASsets

Answer 19

Credit

Question 20

How is the following recorded as a DEB transaction:

Increase Liabilities

Answer 20

Credit

Question 21

How is the following recorded as a DEB transaction:

Decrease in Liablities

Answer 21

Debit

Question 22

How is the following recorded as a DEB transaction:

Increase in Equity

Answer 22

Credit

Question 23

How is the following recorded as a DEB transaction:

Decrease in Equity

Answer 23

Debit

Question 24

How is the following recorded as a DEB transaction:

Increase in Income

Answer 24

Credit

Question 25

How is the following recorded as a DEB transaction: Decrease in income

Answer 25

Debit

Question 26

How is the following recorded as a DEB transaction: Increase in expenses

Answer 26

Debit

Question 27

How is the following recorded as a DEB transaction: Decrease in expenses

Answer 27

Credit

Question 28

How would the following DEB transaction be recorded (which 2 accounts does it affect and how): Cash Sale

Answer 28

Cash in Bank = Debited Sales / revenue = Credited

Question 29

How would the following DEB transaction be recorded (which 2 things does it affect and how): Credit sale

Answer 29

Trade receivables = Debited Sales / Revenue = Credited

Question 30

How would the following DEB transaction be recorded (which 2 things does it affect and how): Credit customer pays

Answer 30

Bank = Debited Trade receivables = Credited

Question 31

How would the following DEB transaction be recorded (which 2 things does it affect and how): Cash purchase

Answer 31

Purchases = Debited Bank = Credited

Question 32

How would the following DEB transaction be recorded (which 2 things does it affect and how): Credit Purchase

Answer 32

Purchases = Debited Trade payables = Credited

Question 33

How would the following DEB transaction be recorded (which 2 things does it affect and how): Company pays supplier owed

Answer 33

Trade payables = debited

Question 34

What do you do with the ntoes included at the bottom of a trial balance?

Answer 34

Include them in the balance before constructing financial statements. Each one must be included twice.

Question 35

If there is info on the sheet regarding closing inventory, where do we factor this into the balance sheet?

Answer 35

Debits: -Add to current assets Credits - Cost of sales = (opening inventory + purchases) - closing inventory.

Question 36

What does it mean if bank is listed on the credit side of a balance sheet?

Answer 36

It represents an overdraft

Question 37

How would you edit a trial balance with the following information? (4) The electricity expense in the TB covers the period from 1st January 2024 to 30th June 2024. It is expected that the electricity bill for the second half of the period will decrease by 5%.

Answer 37

Debit Eletric bill Credit Accruals