1/15
Which of the following is a formula to calculate equity?
Total current assets less total current liabilities
Total non-current assets less total non-current liabilities
Total assets less total liabilities
Total assets less total current liabilities
2/15
The resources that a sole proprietor contributes to a business are known as ______________
profits
3/15
The business assets that a sole proprietor withdraws from his business are known as ______________
loss for the period
4/15
The accounting theory that supports the recording of withdrawal of business’ assets for the owner’s personal use is __________________
accounting period theory
consistency theory
5/15
Which of the following is not an equity item in a sole proprietorship?
losses
Dr Dividends payable
8/15
Issued share capital
Dividend
Dividend payable
9/15
A company has 500,000 ordinary shares. A dividend of $0.06 per share was declared. Calculate the total dividend amount distributed by the company.
$6,000
$30,000
$500,000
$3,000,000
10/15
The balance in the retained earnings account of Ace Limited on 1 January 2021 was $61,780. The profit for the year ended 31 December 2021 was $13,240, and dividends declared and paid was $4,320. Calculate the balance in the retained earnings account on 31 December 2021.
$44,220
$70,700
$75,020
$79,340
14/15
