Practice Flashcards: BTEC Business: Financial Statements | Zestly

Question 1

Accounting Equation

Accepted Answer

Assets = Liabilities + Capital. The most common mistake is forgetting that capital represents the owner's claim on the business.

Question 2

Gross Profit

Accepted Answer

Revenue - Cost of Sales. Students often confuse this with net profit by forgetting to subtract operating expenses.

Question 3

Net Profit

Accepted Answer

Gross Profit - Expenses. The mistake is often failing to include all overheads like rent or wages.

Question 4

Current Asset

Question 5

Current Liability

Question 6

Depreciation

Question 7

Accruals Concept

Question 8

Statement of Financial Position

Question 9

Statement of Comprehensive Income

Question 10

Trade Payables

Question 11

Trade Receivables

Question 12

Non-current Asset