Exam 2: The Statement of Financial Position

Sergei has £8658 in his business bank account at 1 March 20X4. On 2 March he pays in a cheque due in respect of a trade receivable of £6620. On 3 March he buys a non-current asset for £9020. On 4 March he draws his usual monthly salary of £1000 from the business. On 5 March he pays in a cheque for £15 000 in respect of a loan he has just received from a small business expansion scheme.The loan is due for repayment in 20X7. Assuming that there are no other transactions, what is the balance on Sergei's business bank account at close of business on 5 March 20X4?

Daryl runs a small business which packages and sells household and industrial cleaning products.One of the items on the following list is an asset of his business.Which item is the business asset?

Elliott's business has current liabilities of £9000, non-current assets of £36 000 and current assets of £12 000.There are no long-term liabilities.What is Elliott's capital?

Purdy's business has non-current assets of £81 000, current assets of £34 000 and current liabilities of £36 000.There are no long-term liabilities.Which one of the following statements is correct?

Susannah's statement of financial position at 31 March 20X7 includes the following information: Trade payables include one amount that has been owed £4500 since 1 January.Susannah is threatened with legal action unless this amount is paid immediately.Susannah's business overdraft limit is £10 000. Assuming that there are no other transactions, and Susannah pays the full £4500 owing, which of the two following statements are correct? A.The current liabilities of the business will exceed current assets B. The overdraft limit will be exceeded

Xavier's business has long-term liabilities of £25 000 and current liabilities of £23 470 at 31 March 20X0.At the same date, the total of current assets less current liabilities is £13 220 Capital is £30 420. Which one of the following statements is correct?

Which of the following correctly expresses the accounting equation?

Derry's business has non-current assets of £76 000 and total assets of £121 000.Current liabilities are £25 000 and there are no long-term liabilities.Capital is £96 000.Which one of the following statements is incorrect?

Ilona's business bank account at 1 May 20X7 has a balance of £13 000 in her favour. On 2 May 20X7 she buys a non-current asset for £10 000. On 3 May 20X7 she receives an amount owing of £3 600. Assuming that there are no other transactions, what is the balance on Ilona's business bank account at the close of business on 3 May 20X7?

Smylie Bentham is the trading name used by Harry.The business has long-term liabilities of £100 000, non-current assets of £289 770, and current assets of £124 400.The total of current liabilities less current assets is £3340.What is the total of current liabilities?

Simeon runs a business as a sole trader.One of the items on the following list is an asset of his business.Which item is the business asset?

Evan's business has non-current assets of £62 000, current assets of £17 000, current liabilities of £10 000 and a long-term liability of £20 000.What is Evan's capital?

Nerina's statement of financial position at 1 January 20X6 shows the following: On 2 January she receives £5000 in respect of a trade receivable. On 3 January she pays £2000 for a new non-current asset. Assuming there are no other transactions; if Nerina draws up a new statement of financial position at the close of business on 3 January, which one of the following statements is correct?

Mark's statement of financial position at 31 October contains the following balances: What is the total of capital at 31 October?

Barry runs a small auditing firm with his partners Terry and Gerry.One of the items on the following list is a liability of their business.Which item is the liability?

Smylie Bentham is the trading name used by Harry.The business has long-term liabilities of £100 000, non-current assets of £289 770 and current assets of £124 400.The total of current liabilities less current assets is £3340.What is the total for capital?

Burgess's business has non-current assets of £64 000, current assets of £26 000, current liabilities of £21 000 and long-term liabilities of £5000.Which one of the following statements is correct?

Natalia's business bank account shows a balance at 1 December 20X6 of £3350 in her favour.On 2 December she draws out £500 for her own personal use.On 3 December she pays an amount owing of £1050 and pays into the bank a cheque for £250 which is due from HMRC in respect of VAT. What is the effect of these transactions on Natalia's capital?

Telfer Smith's statement of financial position at 31 December shows the following balances: There were no long-term liabilities. What is the total of Telfer Smith's capital at 31 December?

Paige's statement of financial position at 30 April 20X5 shows the following: Paige is currently negotiating a further long-term loan of £10 000.If she is successful, and assuming no other transactions, which of the following statements will be correct in respect of her business's financial position?