Statement of affairs Flashcards
1
Q
What does a statement of affairs list?
A
The assets and liabilities of a business
2
Q
What is capital the difference between?
A
The two totals of assets and liabilities
3
Q
Capital =
A
Net assets
4
Q
How to calculate profit for the year?
Balance at end of year =
A
Balance at start of the year + capital introduced + profit for the year - drawings
