Business Accounting and Finance

Tony Davies, University of Wales, Lampeter, UK
Brian Pain, University of Luton, UK

Financial statements of limited companies - balance sheet

Self-test Questions


1	The total equity of a business is equal to
		A)	the total assets of the business
		B)	the total liabilities of the business
		C)	the total assets less the current liabilities of the business
		D)	the total assets less the total liabilities of the business


2	The balance sheet shows
		A)	the financial performance of the business
		B)	the financial performance and the financial position of the business
		C)	the financial position of the business
		D)	the cash flow of the business


3	Questions 3 to 10 refer to the following diagram: ch02a The shareholders equity is
		A)	4,000 pounds
		B)	20,150 pounds
		C)	8,650 pounds
		D)	12,500 pounds


4	The current liabilities are
		A)	7,200 pounds
		B)	7,000 pounds
		C)	8,850 pounds
		D)	7,650 pounds


5	The current assets are
		A)	8,000 pounds
		B)	9,500 pounds
		C)	10,000 pounds
		D)	5,000 pounds


6	The total liabilities are
		A)	20,150 pounds
		B)	8,850 pounds
		C)	11,500 pounds
		D)	9,850 pounds


7	The working capital is
		A)	20,150 pounds
		B)	21,150 pounds
		C)	1,150 pounds
		D)	8,350 pounds


8	The total assets are
		A)	10,000 pounds
		B)	30,000 pounds
		C)	29,000 pounds
		D)	20,150 pounds


9	The total assets less current liabilities are
		A)	21,150 pounds
		B)	20,150 pounds
		C)	11,500 pounds
		D)	10,500 pounds


10	The net assets are
		A)	30,000 pounds
		B)	29,000 pounds
		C)	20,150 pounds
		D)	21,150 pounds

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