InThinking Revision Sites

INTHINKING REVISION SITES

Own your learning

Why not also try our independent learning self-study & revision websites for students?

We currenly offer the following DP Sites: Biology, Chemistry, English A Lang & Lit, Maths A&A, Maths A&I, Physics, Spanish B

"The site is great for revising the basic understandings of each topic quickly. Especially since you are able to test yourself at the end of each page and easily see where yo need to improve."

"It is life saving... I am passing IB because of this site!"

Basic (limited access) subscriptions are FREE. Check them out at:

www.StudyIB.net

3.4 True or False Quiz

  • /
  • Unit 3 - Finance/
  • 3.4 Final accounts/
  • 3.4 True or False Quiz

Unit 3.4 True or False Quiz - Final accounts (some HL only)

To test your understanding of this topic (Final accounts), answer the following true or false questions.

No.StatementTrue or False?
1.The balance sheet shows an organization's financial position at a specific point in time.

True

2.The statement of profit or loss shows the amount of earnings from a firm's trading activities.

True

3.The profit and loss account shows a company's financial performance over a specific period of time, usually one year.
True
4.

The purpose of financial accounts is to provide information to stakeholders such as managers, employees, creditors, and the tax authorities.

True

5.A company's retained earnings are listed as a liability on the firm's statement of financial position.

False - it is shown in the P&L account

6.The income statement lists the assets and liabilities of a business, which reveals the liquidity position of the organization.

False - refers to the balance sheet

7.The final accounts of a business can be used by stakeholders to assess its financial performance.

True

8.Trademarks, copyrights, patents, and goodwill are all examples of intangible assets.

True

9.The income statement shows that an organization's total revenues must always equal its cost of sales and expenses plus profit.

True

10.A balance sheet can be used to show an organization's profitability.

False - it reveals the firm's liquidity

11.In the profit and loss account, "profit for period" refers to a firm's profit after interest charges and tax deductions have been accounted for.

True

12.Intellectual property rights (IPRs) are examples of a firm's intangible assets.

True

13.A firm's gross profit is calculated by deducting the cost of sales from sales revenues.

True

14.The balance sheet shows that the assets of a company must always equal its liabilities plus equity.

True

15.Property, plant, and equipment are examples of current assets.

False - they are non-current assets

 Teacher only box

Teachers can download a PDF version of this quiz to use with students in class.

Return to the Unit 3.4 - Final accounts homepage

Return to the Unit 3 - Finance and Accounts homepage