EZ 1 financial accounting

 
1. In a statement of financial position for a sole trader the balance of the
non-current assets are usually included at:
Cost
Book value
Scrap value
Replacement value

(0)   2. In accounting the term ‘purchases' means:

 
All items bought
Only goods bought on credit
Only goods bought and paid for
Only goods bought for resale

(1)   3. Which of the following may be classified as an intangible non-current

 
asset?
Leasehold premises.
Investments.
Goodwill.
Trade receivables.

   Thefollowing information should be used to answer questions 6 to 9

  A. SimonStatement of financial position as at 31 March 20Y0
ASSETS £ £ £
Non-current assets
Land and property 10,000 - 10,000
Plant and machinery 8,000 4,000 4,000
Motor vehicles 4,000 1,000 3,000
22,000 5,000 17,000
Current assets
Inventories 3,000
Trade receivables 1,000
Rates prepaid 100
Cash 250
4,350
Total assets 21,350
Owners equity and liabilities
Owner's capital
Balance at 1 Apr 20X9 12,000
Add: Profit for year 3,000
15,000
Less: Drawings 1,000
Balance at 31 Mar 20Y0 14,000
Non-current liabilities
Bank loan at 15% 5,000
Current liabilities
Trade payables 2,000
Rent due 100
Interest due 250
Total current liabilities 2,350
Total liabilities 7,350
Total equity and liabilities 21,350
(1)   4. The historical cost value of non-current assets is:
 
£5,000
£17,000
£22,000
£27,000

(0)   5. The owner's capital employed in the business at the date of the
 
statement of financial position is:
£12,000
£14,000
£19,000
£21,350

(1)   6. The accumulated depreciation on non-current assets is:

 
£5,000
£17,000
£22,000
£27,000
(1)   7. The book value of non-current assets is:
 
£5,000
£17,000
£22,000
£27,000

(1)   8. Which of the following is not a liability?

 
Bank loan
Bank deposit account
Trade payables
Tax owing
(1)   9. Which of the following is correct? 
 
A statement of financial position has the following sub-headings:
Non-current assets, Current assets, Owners' capital,
Non-current liabilities, Current liabilities
Current assets, Income, Non-current assets, Owners'
capital, Non-current liabilities
Owners capital, Non-current liabilities, Current
liabilities, Current assets,
Liabilities, Assets, Non-current income, Non-current
expenditure, Owners capital

(1)   10. 12.Which order should the following items appear in the statement of
 
financial position?
Inventory
Cash
Trade receivables
Prepayments
2, 4, 3, 1
4, 2, 3, 1
1, 2, 3, 4
1, 3, 4, 2
(1)   11. Which of the following should appear in the income statement?
 
Rent
Motor vehicles
Plant and Machinery
Computer equipment

(0)   12. Which of the following should not appear in the income statement?
 
Stationery
Advertising
Fixtures
Rates

(1)   13. Which of the following should appear in the statement of financial
 
position?
Wages
Drawings
Purchases
Heat and light