Formats Flashcards
1
Q
How is capital employed calculated?
A
Owner’s equity
Capital
ADD: net profit
LESS: drawings
ADD: long-term liabilities
2
Q
How is employment of capital calculated?
A
FIXED ASSETS Cost price Provision for depreciation Book value
INVESTMENTS
WORKING CAPITAL
3
Q
How is working capital calculated?
A
WORKING CAPITAL
Current assets
LESS: current liabilities
4
Q
Describe the appropriation section of an income statement
A
NET PROFIT
ADD: interest on drawings
LESS: interest on capital
Salaries
PROFIT SHARE
5
Q
How is capital employed of a partnership calculated?
A
6
Q
Describe the manufacturing section of an income statement
A
7
Q
Describe the trading account section of an income statement
A
8
Q
Describe the profit and loss section of an income statement
A
