Which one of the following does not appear in the statement of profit or loss?

1. Salaries (wages)
2. Machinery
3. Rent income
4. Sales commission

7 According to the IASBs Conceptual Framework for Financial Reporting, which of one of these is a fundamental qualitative characteristic of financial information?

1. Timeliness
2. Consistency
3. Faithful representation
4. Comparability 8 Accounting is the process of identifying, measuring and .............. financial information about an entity to permit informed judgments and decisions by users of the information. which of the following words complete this definition of accounting?

1. Summarising
2. Translating
3. Communicating
4. Extracting 9 The Balance sheet shows:

1. The financial performance at a particular date
2. The financial position at a particular date
3. The financial position for an accounting period
4. The financial performance for an accounting period 10 A firm has premises of 20,000, equipment of 5,000, cash of 1,700 and a bank loan of 9,850. What is the owners equity?

1. 36,550
2. 16,850
3. 9,850
4. Cannot be determined using the information provided.