Income statements and balance sheets cross over Flashcards
1
Q
How is the closing stock figure arrived at?
A
Physically counting stock
2
Q
Which three items appear in both the income statement and the balance sheet?
A
Inventories,profit & net book value
3
Q
what section of the income statement deals with profit utilisation?
A
Appropriation account
4
Q
why is amortisation more difficult to judge than depreciation?
A
Intangible non current assets are hard to give a value to at the start so judging their amortisation lacks accuracy and is subjective
5
Q
what does liquidity mean?
A
nearest to cash
