5. A business had net assets of 150,000 at 1 January 2020 and 100,000 at 31 December 2020. During 2020 the owner introduced capital of 30,000 and made drawings of 10,000. The profit or loss for 2020 was: a) 10,000 b) 30,000 c) 50,000 d) -70,000 Q6. A a) Share Split results in a reduction in the amount of reserves held by a company. b) Rights issue of shares c) Bonus issue of shares d) Consolidation of shares Q7. Catalonia and Co. made payments totalling 32,000 for rent during the year ended on 31 December 2020 and on 31 December 2019 there was a prepayment of 13,000. The rent payable (according to the contract with the owner of the premises) is 5,000 a month. What is the amount that should be charged to the 2020 income statement and shown on the statement of financial position of the business as at 31 December 2020? a) Income statement 32,000; Statement of financial position 15,000 prepayment. b) Income statement 60,000; Statement of financial position 15,000 prepayment. c) Income statement 32,000; Statement of financial position 15,000 accrued expense. d) Income statement 60,000; Statement of financial position 15,000 accrued expense. Q8. The price/earnings ratio multiplied by the e) Dividend per share f) Dividend yield g) Earnings per Share h) Cash flow per share will give the current market value of each share in the company