preparing sole trader financial statements

Question 1

Capital expenditure

Answer 1

Is expenditure incurred on the purchase, alteration or improvement of non-current assets

Question 2

Revenue Expenditure

Answer 2

Is expenditure incurred on running expenses.

Question 3

Adjustments

Answer 3

Adjustments are made to financial statements in order to apply the accounting concepts.

Question 4

The objective of making adjustments

Answer 4

Purpose is to improve the relevance and reliability of financial statements.