FAC1502 - Financial Accounting Principles, Concepts And Procedures
Exam (elaborations)
Fac1502 Ass3 Qustions and Answrs.
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Course
FAC1502 - Financial Accounting Principles, Concepts And Procedures
Institution
University Of South Africa
Question 1 of 26
State whether the following statement is true or false: The cost of stationery used is included
in the calculation of cost of sales.
A. True
B.
False
Answer Key:False
Question 2 of 26
Indicate by choosing the correct option whether the following statement is true or false: ...
FAC1502 - Financial Accounting Principles, Concepts And Procedures
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Fac1502 Ass3 Qustions and Answrs.
,Question 1 of 26
State whether the following statement is true or false: The cost of stationery used is included
in the calculation of cost of sales.
A. True
B.
False
Answer Key:False
Question 2 of 26
Indicate by choosing the correct option whether the following statement is true or false: The
bookkeeper of HS Stores forgot to enter a credit purchases transaction of R10 000 in the
purchases journal, this omission will result in the trade payables balance being understated by
R10 000.
A. True
B.
False
Answer Key:True
Question 3 of 26
State whether the following statement is true or false: Fixed deposits are an example of a
financial asset.
A. True
B.
False
Answer Key:True
Question 4 of 26
State whether the following statement is true or false: If debentures are redeemable within the
next 12 months the debentures will be shown as a current liability in the statement of
financial position.
A. True
B.
False
Answer Key:True
Question 5 of 26
Indicate by choosing the correct option whether the following statement is true or false:
Thabo Stores incurred import duty costs of R1 000 when purchasing inventory from
Mauritius. The import duty cost of R1 000 will be disclosed as an expense under distribution,
administrative and other expenses in the statement of profit orand loss and other
comprehensive income.
A. True
, B.
False
Answer Key False
Question 6 of 26
Indicate by choosing the correct option whether the following statement is true or false: The
instalment of a long-term borrowing which is payable in twelve months will be shown as
current portion of long-term borrowings under current liabilities on the statement of financial
position.
A. True
B.
False
Answer Key:True
Question 7 of 26
State whether the following statement is true or false: Settlement discount granted is deducted
from purchases in determining the cost of purchases.
A. True
B.
False
Answer Key:False
Question 8 of 26
State whether the following statement is true or false: Debentures may be secured by a
mortgage.
A. True
B.
False
Answer Key:True
Question 9 of 26
Indicate by choosing the correct option whether the following statement is true or false: A
loss on sale of a motor vehicle is recorded when the motor vehicle is sold for more than its
carrying value.
A. True
B.
False
Answer Key:False
, Question 10 of 26
Indicate by choosing the correct option whether the following statement is true or false:
Interest on a long-term loan will be disclosed as distribution, administrative and other
expenses on the statement of profit and loss and other comprehensive income.
A. True
B.
False
Answer Key:False
Question 11 of 26
The total revenue and the cost of sales amount disclosed in the statement of profit or loss and
other comprehensive income for Thabo Stores for the year ended 30 June 20.1 is R870 000
and R600 000 respectively. The gross profit for the year is R270 000. The gross profit
percentage (rounded off to the nearest whole number) is …
A. 31%
B. 70%
C. 45%
D. 322%
E. 38%
Answer Key:A
Question 12 of 26
The cost price and the accumulated depreciation on equipment A are R70 000 and R35 000
respectively on 1 March 20.1. Equipment A is sold on 1 March 20.1 for R40 000. Which of
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