13 - Statements Of Comprehensive Income And Financial Position

Question 1

What is an accrual shown as on a statement of comprehensive income?

Answer 1

An expense

Question 2

What is an accrual shown as on a statement of financial position?

Answer 2

Current liability

Question 3

What is a prepayment shown as on a statement of comprehensive income?

Answer 3

An expense

Question 4

What is a prepayment shown as on a statement of financial position?

Answer 4

Current asset

Question 5

What does the top half of a statement of financial position calculate?

Answer 5

Net assets

Question 6

What does the bottom half of a statement of financial position calculate?

Answer 6

Capital employed

Question 7

What are 5 examples of current assets?

Answer 7

Inventories
Trade receivables
Prepayments
Cash in the bank
Cash in hand

Question 8

What are 2 examples of non-current assets?

Answer 8

Premises

Fixtures & fittings

Question 9

What are 3 examples of current liabilities?

Answer 9

Overdrafts
Accruals
Trade payables

Question 10

What are 2 examples of non-current liabilities?

Answer 10

Mortgages

Bank loans

Question 11

What can management measure when they produce statements of comprehensive income/financial position?

Answer 11

Performance and health of a business

Question 12

What can statements of comprehensive income/financial position inform within management?

Answer 12

Decision-making

Question 13

What 4 types of comparisons can be made with statements of comprehensive income/financial position?

Answer 13

Figures
Years
Intrafirm
Interfirm

Question 14

How can comparisons between figures be used with a statement of comprehensive income?

Answer 14

To see profit as a % of sales

Question 15

How can comparisons between figures be used with a statement of financial position?

Answer 15

To see current assets in relation to current liabilities

Question 16

How can comparisons between years be used with a statement of comprehensive income?

Answer 16

To see gross profit over time

Question 17

How can comparisons between years be used with a statement of financial income?

Answer 17

To see levels of current liabilities overtime

Question 18

How can intrafirm comparisons be used with a statement of comprehensive income?

Answer 18

To see sales revenue across different branches

Question 19

How can intrafirm comparisons be used with a statement of financial position?

Answer 19

To see sales revenue across debtors

Question 20

How can interfirm comparisons be used with both a statement of comprehensive income and statement of financial position?

Answer 20

To see how the business is performing among competitors