State two advantages for a sole trader of maintaining complete accounting records.
Explain, at the year-end, the accounting treatment in the income statement and statement of financial position for: Prepayments Accruals
Prepare an extract from the income statement to show gross profit for the year ended 30 April 2017. Make the value of inventory stolen clear.
Prepare the bank account for the year ended 30 April 2017. Make the opening balance obvious.
Calculate the total expense charge that appeared in the income statement for the year ended 30 April 2017.
Discuss Marco’s business liquidity position using only the current and liquid (acid test) ratios.
Advise a potential new supplier whether to sell goods to Marco on a credit basis or not. Justify your response.