Finacial Statements

Question 1

Uses estimated cash receipt’s and cash payments

Answer 1

Cash budget

Question 2

Calculates surplus (deficit) and closing bank balance

Answer 2

Cash budget

Question 3

Uses/ measures income and expense

Answer 3

Income Statement

Question 4

Calculate the profit for a year

Answer 4

Income Statement

Question 5

Comparisons with last year, do any expenses need to be cut

Answer 5

Income Statement

Question 6

For a set period of time (for year ended)

Answer 6

Income Statement

Question 7

Shows any changes in policies

Answer 7

Statement of accounting policies

Question 8

Rules and guidelines used in preparing the statements

Answer 8

Statement of accounting policies

Question 9

Ensures information is consistent to help decisions

Answer 9

Statement of accounting policies

Question 10

Name and Nature, measurement base, property plant and equipment, depreciation, investments, changes

Answer 10

Statement of accounting policies

Question 11

For a set period of time (a month)

Answer 11

Cash Budget

Question 12

Do we need a loan or new investments, do we need to cut expenses, can we purchase new assets?

Answer 12

Cash Budget

Question 13

Calculates net assets and closing capital

Answer 13

Statement of financial position

Question 14

As a set period of time

Answer 14

Statement of financial position

Question 15

Do we have enough assets to pay our liabilities? has our liabilities or equity grown?

Answer 15

Statement of financial position

Question 16

Uses assets. liabilities, drawings and opening capital

Answer 16

Statement of financial position