Balance sheet

Question 1

What is the main revenue account?

Answer 1

Sales

Question 2

What is a balance sheet?

Answer 2

Is a financial statement setting out the book values of assets, liabilities, and capital ‘as at’ a particular point in time.

Question 3

Define Non- current assets

Answer 3

Are resources bought with the intention to remain in the business, to be used in the business and are of long life.

Question 4

In what order is the non-current assets listed?

Answer 4

Permanency

• Premises
  -Fixtures/fittings
  -equipment/Machinery
  -motor vehicle

Question 5

Define current assets

Answer 5

Are resources whose value changes or fluctuates by the effects of the daily business transactions.

Question 6

In what order is the current assets listed?

Answer 6

Liquidity

-Stock
-accounts receivable
-bank
-cash

Question 7

Define Current liabilities

Answer 7

Are obligations that must be paid in less than one year.

Examples: Accounts payable and bank overdrafts

Question 8

Define non-current or long term liabilities

Answer 8

Are obligations that take more than one year to repay.
Example: Bank loans

Question 9

How do we get working capital or net current assets?

Answer 9

Current assets less current liabilities

Question 10

Net loss is __________from the old capital to get the new capital

Answer 10

Subtracted

Question 11

The balance sheet is the ___ stage of the accounting cycle

Answer 11

6th