1.Financial statements are mainly made for:
Internal users
External users
Customers of the company
Internal & External Users
2.Internal users of financial statements include:
Government
Taxation authorities
Management
- External users of financial statements are:
Employees
Management
Investors
4.Financial statements do not contain:
Balance sheet
Budgets
Profit & Loss
Statement of Changes in Equity
Cash flow statements
5.Retained earnings is also referred to as:
Profit of the current year
Profit of the previous year
Accumulated profit
6.Profit & Loss account is used to find out the expenses and revenues of the business from inception?
Yes
No
7.Net income of the company is calculated from:
Balance Sheet
Receipt & Payment account
Profit & loss account
8.Profit & Loss account is also called:
Income statement
Balance sheet
Worksheet
9.Balance sheet is also called:
Profit & Loss account
Trading account
Statement of financial position
Statement of changes in equity
10.Which is the correct order in which following assets should be presented on the balance sheet under the heading Current Assets?
Bank, Cash, Inventory, Accounts Receivable
Cash Bank, Inventory, Accounts Receivable
Inventory, Cash, Bank, Accounts Receivable
Cash, Bank, Accounts Receivable, Inventory
Answers: Internal & External Users, Management, Investors, Budgets, Accumulated Profits, No, Profit & Loss account, Income statement, Statement of financial position, Cash, Bank, Accounts Receivable, Inventory