Btec Business - Learning Aim
F questions and answers
What are the 2 key documents a firm can produce - answer - Statement of
comprehensive income
- statement of financial position
What does a statement of comprehensive income do? - answer Gives
accurate calculations showing how much profit or loss the business has
made
What is straight line depreciation? - answer An asset is depreciated by a
set amount each year
What is reducing balance depreciation? - answer An asset is depreciated
by a set percentage of its remaining value each year.
what is a prepayment? - answer When an expense is made in advance of
the periods to which it relate
example of a prepayment? - answer Rental on a phone line paid quarterly
in advance
What are accruals? - answer An accrual is when an expense is paid after
the periods to which it relates
Example of accruals? - answer Electricity paid quarterly in arrears
what is the statement if financial position - answer A snapshot of a
business's net worth at a particular moment in time, normally at the end
of the financial year
F questions and answers
What are the 2 key documents a firm can produce - answer - Statement of
comprehensive income
- statement of financial position
What does a statement of comprehensive income do? - answer Gives
accurate calculations showing how much profit or loss the business has
made
What is straight line depreciation? - answer An asset is depreciated by a
set amount each year
What is reducing balance depreciation? - answer An asset is depreciated
by a set percentage of its remaining value each year.
what is a prepayment? - answer When an expense is made in advance of
the periods to which it relate
example of a prepayment? - answer Rental on a phone line paid quarterly
in advance
What are accruals? - answer An accrual is when an expense is paid after
the periods to which it relates
Example of accruals? - answer Electricity paid quarterly in arrears
what is the statement if financial position - answer A snapshot of a
business's net worth at a particular moment in time, normally at the end
of the financial year
