Quiz 1 Flashcards
1
Q
Capital expenditure is expenditure…
A
on the acquisition of non-current assets, or improvement in their earning capacity
2
Q
Information about an entity’s financial position is primarily provided in:
A
the balance sheet
3
Q
The accounting equation can be written as:
A
Assets – liabilities – opening capital + drawings = profit
4
Q
The capital of a sole trader would change as a result of:
A
personal petrol being paid for out of the business’s petty cash
5
Q
The purpose of the financial statement that lists an entity’s total assets and total capital/liabilities is to show
A
the financial position of the entity at a particular moment in time
