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1.1 The general purpose of a Balance Sheet is to advise the reader about: Boo the assets and liabilities of the business the expenses and

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1.1 The general purpose of a Balance Sheet is to advise the reader about: Boo the assets and liabilities of the business the expenses and assets of a business the income and expenses of a business all of the above 1.3 A shareholder is not personally liable for the debts of the company, unless: the shareholder has given a personal guarantee for the debts of the company the shareholder earns more than $60,000 per year the shareholder sells all their shares the shareholder has contributed assets to the business 1.4 With regards to a sole trader, which of the following statements is true? 40 a sole traders business profits is liable for company tax a sole trader is not allowed to employ any staff a sole trader has unlimited liability a sole trader business must be registered with the companies office 1.5 In order for financial statements to have the qualitative characteristic of faithful representation the financial information must be; a b. complete, free from error, and free from estimation complete, free from error, and free from bias Scanned with CamScanner Page 3 of 6 ko complete, free from error, and free from calculations complete, free from error, and free from information 1.6 With regard to a partnership, which statement is true? ceases to exist when a partner leaves is incorporated under the Companies Act 1980 partners have limited liability is invalid if there is no partnership deed oo 1.8 Understandability is the enhancing qualitative characteristic that: O. requires financial statements to be comparable from year to year requires financial statements to be verifiable requires financial statements to be timely requires financial statements to be clear and concise d

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