Indicate by choosing the correct option whether the following statement is true or false:
The presence of a purchases account indicates that the periodic inventory system is in use.
Select one:
True
False
Question 2
Not yet answered
Marked out of 4.00
Please choose the correct option for the given scenario.
The correct closing transfer entries for the depreciation
credit the depreciation account and debit the profit or loss account.
account at the end of the financial year will be ...
The correct closing transfer entries for the sales
account at the end of the financial year will be ... debit sales and credit the trading account.
The correct closing transfer entries for the interest on
fixed deposit account at the end of the financial year will debit interest on fixed deposit and credit the profit or loss account.
be ...
The correct closing transfer entries for the credit losses
credit the credit losses account and debit the profit or loss account.
account at the end of the financial year will be ...
Question 3
Not yet answered
Marked out of 1.00
Indicate whether the following statement is true or false:
The profit or loss account are closed off to the statement of financial position for a financial year.
On 1 April 20.17 Trak Traders took up an insurance contract with Blue Sky Insurers for 24 months. The insurance policy was
effective with immediate effect and stipulated that all premiums for a year (a period of 12 months starts from 1 April each year) are
due by 1 April each year.
An extract from the list of balances of Trak Traders at year-end, reflected the following balances:
28 February 20.19 28 February 20.18
Premiums paid during the year ended *R17 520 *R19 020
payments for 12 months*payments for 12 months
The amount for insurance premiums and the short-term adjustment to be disclosed in the statement of financial position of Trak
Traders as at 28 February 20.19 will be …
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the nearest Rand (eg: 50.56 is 51)
3. Only show the amount, do not show the R (eg: 12141.72)
Answer: 1460
Question 5
Not yet answered
Marked out of 1.00
Indicate by choosing the correct option whether the following statement is true or false:
All the amounts in the profit or loss account excludes VAT amounts.
On 1 May 20.18 Venus Traders entered into a new two-year advertising agreement with Tino Advertising Agency. The advertising
agreement was effective with immediate effect and stipulated that Venus Traders would pay R2 750 per month to Tino Advertising
Agency for advertising services that would be provided by Tino Advertising Agency on a monthly basis. Tino Advertising Agency
has performed all the necessary advertising services that was required from them since the effective date of the advertising
agreement for the current financial period (the current financial period ends on 28 February 20.19).
The pre-adjustment trial balance for the year ended 28 February 20.19 reflected advertising expenses for an amount of R18 720 as
well as accrued advertising expenses of R4 170 on 1 March 20.18 (the beginning of the current financial period). On 20 April 20.18
Venus Traders paid the advertising expenses that was outstanding from the previous financial period. The outstanding advertising
expenses for the current financial period must still be provided for.
The advertising expenses amount to be disclosed in the statement of profit or loss and other comprehensive income for the year
ended 28 February 20.19 will be:
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the nearest Rand (eg: 50.56 is 51)
3. Only show the amount, do not show the R (eg: 12141.72)
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