O-LevelBusiness StudiesFinancial information and decisions7115/11 · May/June 2011 · Q420 Marks

Trucker is a public limited company that makes products such as tractors and construction vehicles. Table 1 gives selected information from its Balance Sheet for the last two years. Table 1: Trucker's Balance Sheet as at 30 June $m 2009 2010 Fixed Assets 200 225 Current Assets 150 180 Current Liabilities 90 100 Net Assets 260 305 Financed by: Long term Liabilities 200 220 Shareholders' Funds 60 85 Capital Employed 260 305]

(a)What is meant by the term ‘shareholders' funds'?[2]
(b)Identify two examples of Trucker's current assets. Example 1: Example 2:[2]
(c)Identify and explain two reasons why a business might have creditors. Reason 1: Explanation: Reason 2: Explanation:[4]
(d)Identify and explain three possible reasons why Trucker's net assets increased in 2010. Reason 1: Explanation: Reason 2: Explanation: Reason 3: Explanation:[6]
(e)Can the success of Trucker's business be assessed just by analysing its Balance Sheet? Justify your answer.[6]

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Topic: Financial information and decisions, O-Level Business Studies (syllabus 7115). Structured question, 20 marks.
Source: O-Level Business Studies, May/June 2011 Paper 1 Variant 1, question 4.

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