Exam 1: The Statement of Financial Position Balance Sheetand What It Tells Us

The statement of financial position of Rosie Ltd.includes the following entries: inventory £25,000,trade receivables £12,000,cash £11,000 and current liabilities £25,000 (made up of trade payables £16,000,short-term borrowing £800 and £8,200 current tax payable).Calculate the current ratio.

An example of a long-term liability is:

Which of the following statements is correct?

An example of a current asset is:

Which of the following statements is false?

An example of a current liability is:

Which of the following statements is correct?

What a company owns is known as assets and what a company owes is known as expenses.

The accounting equation can be stated as:

Which of the following statements is correct?

If a company has long-term borrowings of £12,000 and equity of £138,000,what is its gearing ratio?

Which of the following statements is correct?

The main purpose of financial accounting information is to:

Inventory,trade receivables and cash are classified as:

The accounting equation can be stated as:

Revenue from sales decrease assets and decrease equity.

Non-current liabilities include long-term borrowings such as mortgages.

Corporation tax payable would be classified as:

Non-current assets include inventories and trade receivables.

If non-current assets are £250,000,current assets £70,000,long-term borrowing £50,000 and current liabilities £10,000 ,what is the value of owner's equity?