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Unit 3.4 - Practice Material

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16 views

Unit 3.4 - Practice Material

Uploaded by

liufanjing07
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Business Management Practice Questions Unit 3.

Exam practice questions for Profit and Loss Statement

Suzette Flower Company has an opening stock of $26,000, a closing stock of $23,000, and has
purchased stock during the year costing $165,000. Calculate Suzette Flower Company’s cost of
sales (COS). [2 marks]

Study the profit and loss account for Camiko Face Masks Ltd. below and state the missing
figures. [3 marks]
Business Management Practice Questions Unit 3.4

Francis Chan runs a bike hire company called Chan’s Bike Hire Co. in a small local town.
Construct a profit and loss account for Chan’s Bike Hire Co. from the data below, for the year
ending 31 August 2022. [4 marks]
Business Management Practice Questions Unit 3.4

Exam practice questions for Balance Sheet


Distinguish between current assets and non-current assets. [4 marks]

Distinguish between the terms debtors and creditors. [4 marks]

Construct a balance sheet for Javier Jewellery Co. from the financial data below, as of 31 August
2022. [4 marks]
Business Management Practice Questions Unit 3.4

Construct a balance sheet for Jim's Gym from the data below presented on 31st December
2022. [4 marks]
Business Management Practice Questions Unit 3.4

Case Study

Teddy Land has just celebrated their first anniversary as a charity and need to prepare their financial
statements for the first time. They supply pajamas to children who have to spend more than a week
in a hospital and sell pajamas to the general public to help fund their project.

Since the owners are not experienced with finance, they are unsure of how to complete these
financial statements. They also are not sure if they should include their intangible assets on the
balance sheet. They have decided to hire a professional to do this and have given them the following
information in Table 1.

a. Define the term intangible asset. [2]

b. Define the term debtors. [2]

c. Construct a fully labeled profit and loss account for PL for 2022. [4]

d. Construct a fully labeled balance sheet for PL as at 2022. [5]

Accumulated depreciation 30

Plant, property, equipment 600

Stock 55

Cost of sales 4,000

Short term loans 15

Expenses 3,000

Long term loans 250

Debtors 15

Trade creditors 20

Cash 20

Revenue 12,000

Retained surplus 365

Interest 1,000

Surplus for period 3,700

Overdrafts 10

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