Practice - Statement of Affairs Method
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What is a Statement of Affairs?
💡 Hint: Think about the purpose of this financial method.
How do you calculate Net Profit?
💡 Hint: Consider all elements that affect capital.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Statement of Affairs primarily summarize?
💡 Hint: Focus on what it captures.
True or False: The Statement of Affairs Method shows detailed records of income and expenses.
💡 Hint: Recall the purpose of summarization.
1 more question available
Challenge Problems
Push your limits with advanced challenges
If the opening capital is ₹100,000, closing capital is ₹90,000, with ₹15,000 withdrawn and ₹5,000 added, explain why the business lost money this year. Provide a detailed Statement of Affairs calculation.
💡 Hint: Consider what withdrawals may indicate about the business's performance.
Create a comprehensive Statement of Affairs for a business given its assets and liabilities. Then, derive the net profit or loss using the data.
💡 Hint: Ensure to verify the balances between assets and liabilities.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.