Practice Components (17.5.2) - Final Accounts (Trading, Profit & Loss Account and Balance Sheet)
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Learning

Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is an asset?

💡 Hint: Think about what a business owns.

Question 2 Easy

What are liabilities?

💡 Hint: Consider debts or loans a business may have.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What are assets?

Obligations owed to others
Resources owned by the business
Owner's claims against assets

💡 Hint: Think about what a company possesses.

Question 2

True or False: Owner's equity can be negative.

True
False

💡 Hint: Consider scenarios with large debts.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A company has total assets of $800,000, total liabilities of $600,000, and retained earnings of $100,000. What is the owner's equity?

💡 Hint: Use your balance sheet equation.

Challenge 2 Hard

If a business has liabilities of $150,000 and owner's equity of $350,000, what are the total assets?

💡 Hint: Remember the balance sheet formula.

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