Financial Statement Analysis 2023
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Questions and Answers

What is the total amount of assets for Mahmoud Shaaban's establishment?

  • 700,000
  • 500,000
  • 650,000
  • 600,000 (correct)
  • Which of the following correctly reflects the owner's equity?

  • 340,000
  • 350,000 (correct)
  • 370,000
  • 360,000
  • What category do cash in hand and accounts receivable fall under?

  • Current Assets (correct)
  • Fixed Assets
  • Long-term Liabilities
  • Intangible Assets
  • Which of the following is considered a long-term liability?

    <p>Long-term Loan</p> Signup and view all the answers

    How much is the total amount of liabilities for Mahmoud Shaaban's establishment?

    <p>600,000</p> Signup and view all the answers

    Study Notes

    Mahmoud Shaaban's Establishment Financial Statement

    • The financial statement reflects the financial position of the establishment as of 2023/12/31.
    • The establishment has a total of 600,000 in assets and 600,000 in liabilities.
    • The assets are categorized as fixed assets, current assets, and intangible assets.
    • Fixed assets include property, plant, and equipment (PP&E) such as a building worth 100,000 and vehicles worth 50,000.
    • Current assets include assets that can be readily converted into cash, such as 70,000 in cash, 80,000 in accounts receivable, and 100,000 in bills receivable.
    • Intangible assets include goodwill, which is valued at 200,000.
    • Liabilities are categorized as equity, current liabilities, and long-term liabilities.
    • Equity represents the owner's stake in the business and includes capital, profit, and withdrawals.
    • Owner's equity (capital) is 350,000, profit is 40,000, and personal withdrawals total 10,000.
    • Current liabilities are obligations due within a year, such as an 8,000 short-term loan.
    • Long-term liabilities are obligations maturing in more than a year such as a 140,000 long-term loan.
    • The balance sheet confirms the fundamental accounting equation: Assets = Liabilities + Equity.
    • Therefore, the total assets equal the total liabilities, which is 600,000.
    • The total owner's equity is calculated as 350,000.
    • The 350,000 owner's equity is achieved assuming that liabilities and total assets are equal.

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    Description

    Explore the financial position of Mahmoud Shaaban's establishment as of December 31, 2023. This quiz covers asset categories, liabilities, and the owner's equity. Test your knowledge on interpreting financial statements and understanding key concepts in accounting!

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