A business keeps various types of financial records to monitor its performance and ensure that taxes are paid. These include cash flow statements, profit and loss accounts and a balance sheet.
What is used to show the value of a business on a particular date?
A trading account
A cash flow statement
A balance sheet
What is used to show the gross profit of a business over a year?
What is used to show the flow of money in and out of the business over a year?
What does the profit and loss account show?
If the cost of sales is £20,000 and the revenue is £60,000, then what is the gross profit?
Cannot be worked out
If gross profit is £60,000 and other expenses are £100,000 then what is the net profit?
If current assets are £50,000 and current liabilities are £90,000, then what is net profit?
What does a balance sheet show?
The value of a business on a particular date
Profit earned over a trading period
The cash or near-cash available to the firm
If current assets are £50,000 and current liabilities are £90,000 then what is the business?
Making a loss
What makes a business solvent?
It has enough profit
It has enough working capital
It has enough fixed assets