SOCI and SOFP

Question 1

What is included in a statement of comprehensive income:
1.
2.
3.
4.

Answer 1

1. Costs of goods sold.
2. Gross profit.
3. Expenses.
4. Net profit.

Question 2

The statement of comprehensive income (SOCI) records the _______________ of a business to show if it has made a ______________________.

The statement of financial position (SOFP) records the ________ of a business using its ________________________________.

Answer 2

performance
profit or a loss

value
assets and liabilities

Question 3

There are 2 types of depreciation:
1. Straight-line depreciation- Takes away ____________________.
2. Reducing-balance depreciation- Takes away __________________________________.

Answer 3

a set number each year

a percentage of an asset’s value each year

Question 4

What is historic cost?

Answer 4

Cost of an asset when first purchased.

Question 5

What is residual value?

Answer 5

Value of asset when disposed by the business.

Question 6

Profit quality measures how _______________________.

Profit quality measures if the _______________________ can be generate the _________ profit again.

Answer 6

sustainable the profit is.

profit-making activity
same

Question 7

Window dressing is when data is:

Answer 7

dressed to appear more positive.

Question 8

Current assets are items that _______________________ and stay in the business for the _____________.

Non-current assets are items that stay in the business for the _______________.

Answer 8

change value regularly
short-term

long-term

Question 9

Current liabilities are something a business should pay back within ______________.

Non-current liabilities are something a business should pay back within the __________.

Answer 9

1 year

long-term

Question 10

Net current assets represent:

Answer 10

the business’s ability to meet short term payments.