Name____________________________
25 pts
IB Business Management - Review for Test 5 Part 1 (Financial Statements/Accounts)
1. Classify each of the balance sheet items below. Write CA (Current Assets), FA (Fixed Assets), CL (Current
Liabilities, LTL (Long term liabilities), or C (Capital and Reserves) in the blank next to each item.
2.
Building
Ordinary Shares
Copyrights
Reserves
Debtors
Overdraft
Taxes Payable
Revaluations
Cash
Bank Loan
Trade Creditors
Retained Profit
Trademark
Debentures
Circle the correct answer: (Net profit after interest and tax, Net profit before interest and tax) best provides
a basic measure of business performance.
3. Why are the financial statements of two years often shown side by side?
4. What is the difference between an intangible asset and a tangible asset. Give an example of each.
5. List three groups of people outside of a given firm who might want to see it’s financial statements. Explain
each group's interest in the statements.
a.
b.
c.
6. Circle the correct answer: To find the value of a company at a point in time, you would look at (net assets,
net profit) on the balance sheet.
7. Explain what working capital tells us about a company. How is working capital calculated?
8. Using the following data, complete a), b), and c) below. Most of this question is directly from an old exam.
USE THE FOLLOWING PAGES TO CREATE THE FINANCIAL STATEMENTS. BE SURE YOUR
WORK IS NEAT, COMPLETE, AND ACCURATE.
The following information is provided for Jemenez Ltd for 2007 and 2008. All values are in US $:
Open photo file to see data to use
Open forms and print if you want to hand write financial statements or create a spreadsheet if you prefer
a) Calculate working capital for 2007 and 2008
b) Prepare a profit and loss account for 2007 and 2008
c) Prepare a balance sheet for 2007 and 2008