Balance Sheet

Question 1

Classification of assets and liabilities allows users to evaluate…

Answer 1

Business stability, liquidity and leverage/gearing.

Question 2

Notes

Answer 2

Expand on entries contained in the balance sheet.

Question 3

Property, Plant and Equipment Note

Answer 3

Contains the cost price of any property, plant and equipment as well as accumulated depreciation, and the total property, plant and equipment at book value.

Question 4

Share Capital Note

Answer 4

Details of changes in share capital.
Ie:
430,000 ordinary shares, fully paid … $420,000

Question 5

Reserves Note

Answer 5

Changes in reserves.
Ie:
Asset revaluation … 8000
General … 3000
Total … $11,000

Question 6

Dividends Note

Answer 6

Sets out the dividends paid AND recommended for the year.
Ie:
The following dividend was paid in the year ended 30 June 2029:
430,000 ordinary shares, $0.05 per share … $21,500
The directors have recommended a final dividend for the year ended 30 June 2029:
430,000 ordinary shares, $0.07 per share … $30,100.