Statement of Financial Position

Question 1

2 forms of Equity

Answer 1

1. Share Ordinary Capital
2. Retained earnings

Question 2

What are retained earnings?

Answer 2

Sum of earnings from period
Revenues
Expenses
Dividends

Question 3

What is ordinary share capital

Answer 3

All shares other than dividens

Question 4

Equation for profits of the year

Answer 4

Revenue - Expenses = Profit

Question 5

What is double entry bookkeeping

Answer 5

each transaction has a dual effect on equation