Sofp

Question 1

Intangible asset

Answer 1

Come under non current assets these add value to the business however cannot be touched e.g trademark or goodwill

Question 2

Amortisation

Answer 2

Gradually writing off the cost of a intangible asset to show a new net book value

Question 3

Tangible asset

Answer 3

Also non current asset includes items such as vehicle , computer equipment, machinery

Question 4

Net book value

Answer 4

Cost of a non current asset minus accumulated depreciation used to find the net assets

Question 5

Non current liabilities

Answer 5

Amount you owe has more than a year outstanding

Question 6

Working capital

Answer 6

Takes the total current assets minus the total current liabilities

Question 7

Retained profit

Answer 7

The amount of the profits the business has accumulated wach year added to this is the profit of the current year

Question 8

Drawings

Answer 8

Only available to sole trader or partnership owners can take away money from business deducted by capital + retained profit

Question 9

Capital employed

Answer 9

Total capital + retained profit - drawings

Question 10

Net assets and capital employed are the same REMEMBER