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1. The balance sheet tells you how mush a business is worth.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
2. All the fixed assets of a business are shown at their market value.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
3. By depreciating the fixed assets of a business, you ensure that you have sufficient cash to replace them at the end of their life.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
4. All capital is good; therefore you want as much working capital as possible.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
5. It is always better to borrow money from the bank than to seek further equity, perhaps from other shareholders.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
6. Loans are repaid out of accumulated profits.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
7. Reserves represent the cash the business has accumulated over its life.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
8. A company that is making profits can always pay its bills.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
9. Any company making higher profits than another is doing better than that company.
   1.   ?    Agree
   2.   ?    Don’t Know
   3.   ?    Disagree
10. To understand accounting you have to be able to do double-entry book-keeping
    1.   ?    Agree
    2.   ?    Don’t Know
    3.   ?    Disagree

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