IB BUSINESS MANAGEMENT FINANCE AND
ACCOUNTS 3.4 FINAL ACCOUNTS STUDY
GUIDE 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ balance sheet Answer: contains financial information on an
organization's assets, liabilities and the capital invested by the owners on
one specific day, thus showing a 'snapshot' of the firm's financial
situation
◉ book value Answer: the value of an asset as shown on a balance
sheet; the market value of assets can be higher that its book value
because of intangible assets such as the brand value and the goodwill of
the business
◉ cost of goods sold Answer: showing in the trading account and
represents the direct costs of producing or purchasing stock that has been
sold
◉ depreciation Answer: the fall in the value of fixed assets over time,
from wear and tear (due to the assets being used) or obsolescence
(outdated or out of fashion)
◉ final accounts Answer: published annual financial statements that all
limited liability companies are legally obliged to report, i.e. the balance
sheet and the P&L account
ACCOUNTS 3.4 FINAL ACCOUNTS STUDY
GUIDE 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉ balance sheet Answer: contains financial information on an
organization's assets, liabilities and the capital invested by the owners on
one specific day, thus showing a 'snapshot' of the firm's financial
situation
◉ book value Answer: the value of an asset as shown on a balance
sheet; the market value of assets can be higher that its book value
because of intangible assets such as the brand value and the goodwill of
the business
◉ cost of goods sold Answer: showing in the trading account and
represents the direct costs of producing or purchasing stock that has been
sold
◉ depreciation Answer: the fall in the value of fixed assets over time,
from wear and tear (due to the assets being used) or obsolescence
(outdated or out of fashion)
◉ final accounts Answer: published annual financial statements that all
limited liability companies are legally obliged to report, i.e. the balance
sheet and the P&L account
