Practice Key Principles (17.5.4) - Final Accounts (Trading, Profit & Loss Account and Balance Sheet)
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Key Principles

Practice - Key Principles

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Learning

Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What do you understand by the term 'Assets'?

💡 Hint: Think about what a company owns.

Question 2 Easy

Can you explain what 'Liabilities' are?

💡 Hint: Consider what a company must pay back.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the fundamental accounting equation?

Assets + Liabilities = Capital
Assets = Liabilities + Capital
Liabilities = Assets - Capital

💡 Hint: Remember, assets must balance with debts and owner's equity.

Question 2

True or False: The Going Concern principle assumes a business will close down in the near future.

True
False

💡 Hint: Think about what this principle implies for reporting.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A company has total assets of $500,000, liabilities of $300,000, and capital of $200,000. Using the accounting equation, assess whether the accounts balance.

💡 Hint: Check if $500,000 equals the sum of the other two values!

Challenge 2 Hard

If a business reports income of $100,000 with expenses of $60,000, how does the Matching principle apply to this scenario?

💡 Hint: Think about how income and expenses relate to each other.

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