Choose the correct answer for each question.

1. Dharma runs a business selling jewellery. One of the items on the following is an asset of his business; the other items are liabilities. Which is the business asset?

   1.   ?    Loan from bank
   2.   ?    Stock of jewellery for resale
   3.   ?    Amount of £6000 owed to the Customs & Excise for VAT
   4.   ?    £4000 drawn out of the business by Dharma

2. Dransfield sells protective clothing trading as Dransfield & Co. Which of the following is not an asset of the business?

   1.   ?    Petty cash held in Dransfield's office desk
   2.   ?    £100 in £5 notes in Dransfield's wallet
   3.   ?    Bank account balance in the name of Dransfield & Co, of £3 250
   4.   ?    Deposit account balance in the name of Dransfield & Co, of £10 300

3. Deirdre's business has fixed assets of £30 000, current assets of £17 500 and current liabilities of £3 600. There are no long-term liabilities. Deirdre's capital is:

   1.   ?    £51 100
   2.   ?    £16 100
   3.   ?    £43 900
   4.   ?    £8900

4. Dima's business has current liabilities of £35 000, current assets of £39 000, fixed assets of £16 000 and long-term liabilities of £8 000. What is her capital?

   1.   ?    £12 000
   2.   ?    £50 000
   3.   ?    £4000
   4.   ?    £82 000

5. Daxa's business has net assets of £46 300. Her capital is £46 300, fixed assets are £35 000, and current assets are £21 750. What is the total of Daxa's business liabilities?

   1.   ?    £56 750
   2.   ?    £10 450
   3.   ?    £13 250
   4.   ?    £33 050

6. Dale's business has a current assets total of £29 750 and current liabilities of £13 660. There are no long-term liabilities in his business. Dale's capital account balance is £23 490. The business's fixed assets total is:

   1.   ?    £7400
   2.   ?    £39 580
   3.   ?    £23 490
   4.   ?    £16 390

7. Doyle Distribution is a haulage business owned by Damon Doyle, a sole trader. The business fixed assets total £36 250. Current liabilities are £8 500, long-term liabilities are £5 000 and the capital account balance is £42 900. What is the total for current assets in the business?

   1.   ?    £39 750
   2.   ?    £20 150
   3.   ?    £22 750
   4.   ?    £65 650

8. Dustin's business bank account at 1 April 20X4 totals £2 200.
   On 2 April 20X4 he receives payment from a debtor of £17 260.
   On 3 April 20X4 he pays a creditor £12 400.
   There are no other transactions in the three day period. What is the effect of these transactions on Dustin's net assets?

   1.   ?    Increase net assets by £4860
   2.   ?    Increase net assets by £7060
   3.   ?    Decrease net assets by £4860
   4.   ?    No effect

9. Delphine's business bank account balance at 1 November 20X5 is £12 250. On 2 November she draws out £4 600 for her own personal use. On 3 November she buys fixed assets for £2 600. There are no other business transactions in the 3 day period. What is the effect of these transactions on Delphine's net assets?

   1.   ?    No effect
   2.   ?    Increase net assets by £2600
   3.   ?    Decrease net assets by £7200
   4.   ?    Decrease net assets by £4600