Accounting · 7 questions

Accounting 1

How one event moves the income statement, the cash flow statement and the balance sheet.

Start from question 1 → Go through them in order, or pick one below.
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  1. 1 Machine purchaseA company buys a machine for £100, paid in cash. InternAnalyst Build the statements
  2. 2 Depreciation up £20A company’s depreciation goes up by £20. The tax rate is 25% and tax is paid in cash. InternAnalyst Build the statements
  3. 3 Buying stock with cashA retailer buys £50 of stock for its shelves and pays in cash. Nothing has been sold yet. Intern Build the statements
  4. 4 Selling the stockThe retailer sells that £50 of stock for £80, and the customers pay in cash. The tax rate is 25% and tax is paid in cash. Intern Build the statements
  5. 5 Issuing new sharesA company raises £200 by selling new shares to investors. Intern Build the statements
  6. 6 Paying a dividendA company pays its shareholders a £30 cash dividend. Intern Build the statements
  7. 7 Capitalise or expense?Which of these costs does a company put on its balance sheet (capitalise) rather than charge straight to the income statement? Intern Pick the drivers