Reference no: EM132992380

Problem 1: What is included in the statement of financial position of a business?

A. Capital, sales and assets.
B. Income, expenses, assets and liabilities.
C. Capital, drawings, assets and liabilities.
D. Assets, liabilities, profit on disposal of non-current assets.
E. Assets, discounts and liabilitieS

Problem 2: Indicate by choosing the correct option whether the following statement is true or false: After reconciling the year-end physical trading inventory count amount with the balance of the trading inventory account in the general ledger, it was determined that there is a trading inventory deficit. The trading inventory deficit will be recorded as income in the statement of profit or loss and other comprehensive income.

A. True

B. False

Problem 3: Indicate by choosing the correct option whether the following statement is true or false: At the end of the financial year, the loss calculated in the profit or loss account in the general ledger is to transferred to the capital account by debiting the profit or loss account and crediting the capital account.

A. True

B. False

Problem 4: It is sometimes better to start by preparing the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of financial position if you want to convert a single-entry system into a double entry system where subsidiary journal are kept.

A. True

B. False