Statement Of Financial Position (limited Company) Flashcards
1
Q
What does the ‘asset section’ consist of?
A
- Cash
- Land and buildings
- Profit
- Income tax
- Preference dividend
2
Q
What does the ‘liability section’ consist of?
A
- Debentures / bonds
- Preference shares
3
Q
What does the ‘equity section’ consist of?
A
- Equity shares
- Shares premium
- Retained earnings
- Dividend payable
- Revaluation reserve
- General reserve
4
Q
What is the formula for net profit?
A
Closing capital + drawings - capital introduced - opening capital.
5
Q
What is accumulated depreciation?
A
An asset with a negative balance.
6
Q
What does S.O.P.L have that S.O.F.P doesn’t?
A
Opening inventory.
