FA Tutorial 2 for lecture 1

Jul 17, 2026

Uploaded by Asher

Financial accounting tutorial content focused on foundational definitions and exam-style multiple-choice questions covering core statements and concepts: assets (current and non-current), capital/equity, liabilities (current and non-current), sales or revenue, gains, and expenses. Includes targeted questions to distinguish profit or loss and financial position, plus partnership and sole trader liability distinctions. Extends to end-of-year end 2010 computations using P/L and SFP equations and transaction effects on A=L+C with increase/decrease notation.

LanguageEnglish

CategoryExam

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

Define the following (with examples where possible) Assets Non-current assets Current assets Capital Liabilities Non-current liabilities Current liabilities Sales (revenue) Gains Expenses P/L shows SFP shows 1 Which of the following statements is true? A The directors ofa company are liable for any losses of the company B A sole trader business is owned by shareholders and operated by the proprietor C Partners are liable for losses in a partnership in proportion to their profit share ratio D A company is run by directors on behalf of its members 2 Which of the following statements best defines a statement of financial position? A It is a summary of income and expenditure for an accounting period B It is a summary of cash receipts and payments made during an accounting period C It is a summary of assets, liabilities and equity at a specified date D It is a summary of assets and expenses at a specified date 3 Which of the following statements best defines a statement of profit or loss? A It is a summary of assets and expenses at a specified date B It is a summary of cash receipts and payments made during an accounting period C It is a summary of assets, liabilities and equity at a specified date D It is a summary of income and expenditure for an accounting period 4 Which one of the following statements best defines a liability? A A liability is an obligation arising from a past transaction or event. B A liability is a legally binding amount owed to a third party. C A liability is an obligation arising from a past transaction or event which is expected to be settled by an outflow of economic benefits. D A liability is anything which results in an outflow of economic benefits from an entity. 5 Which one of the following statements best defines an expense? A An expense is any outflow of economic benefits in an accounting period. B An expense is an outflow of economic benefits resulting from the purchase of resources in an accounting period. C An expense is an outflow of economic benefits resulting from a claim by a third party. D An expense is an outflow of economic benefits in an accounting period as a result of the using up of resources or a fall in the value of an asset. 6 Which one of the following statements is true in relation to a partnership? A A partnership is a separate legal entity B A partnership is jointly owned and managed by the partners C A partnership can raise capital by issuing shares to members of the public D A partnership is able to own property and other assets in its own name 7 Which one of the following statements is true in relation to a sole trader? A A sole trader cannot have any employees B A sole trader is able to introduce or withdraw capital from the business at any time C A sole trader has limited liability for the debts ofthe business D A sole trader can operate a business from only one location 8 Which of the following statements is tru

Jul 17, 2026

Uploaded by Asher