Profit And Loss And Balance Sheets Page 9
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
261 : How much profit did the business make this year?
2 : What are the main positive things that have changed about the business?
3 : What are the main negative things that have changed about the business?
The net assets should always balance off against the value of the funds invested originally
and the accumulating profits.
If the value of the net assets is positive the business is ’solvent’ and can carry on trading.
If it is negative the business may be ’technically insolvent’; in this case it can carry on
trading but may have to cease trading if there are no sound prospects for recovery.
Answers can be found in the appendix on page 423
P 221
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business