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Incomplete Records Truth-Seeker

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Incomplete Records Truth-Seeker

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About this activity

Decide if each statement is true or false.

Created by

poa
poa
Pakistan

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Incomplete Records Truth-Seeker
 

Incomplete Records Truth-SeekerOnline version

Decide if each statement is true or false.

by poa
1

A Statement of Affairs is prepared to find the opening capital balance.

2

Markup is calculated as a percentage of the selling price.

3

Capital introduced by the owner during the year decreases closing capital.

4

Cost of Sales plus Gross Profit equals the total Sales value.

5

Discounts allowed are recorded on the debit side of the Receivables account.

6

If assets increase and liabilities stay the same, capital must decrease.

7

In the indirect method, opening capital is found by subtracting liabilities from assets.

8

Drawings decrease the closing capital balance in the accounting equation.

9

Credit sales can be found by reconstructing the Trade Receivables account.

10

Gross Profit Margin is always a higher percentage than Markup on the same item.

 
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