Questions Bee Oe mee me erty ROS 1,1 Who issues International Financial Reporting Standards? A The FRS Advisory Committee Sogurltnats ae D The government (2 marks) 1.2 Which groups of people are mast likely tobe interested in the financial staternents ofa sole trader? Shareholders of the company ‘The business's bank manager The tax authorities Financial analysts Land 2 only 2 and 3 only a> sone 1, 2 and 3 only (2 marks) 1.3 Identity, by indicating the relevant box in the table below, whether each of tne following statements is true or false, supp o goods on ered Tae False interested ony in the statement at firancial position, ie an indication ofthe current state at ata, The objective of franc True Fale statements isto provide information about the financial position, performance and hanges i financial poston of an entity that is useful toa ‘wide range of users in making feconomie decisions (2 marks) 1.4 Which of the fllowing ate advantages of trading as a limited liability company? 1 Operating as a limited liability company makes raising finance easier because additional shares ccan be issued to raise additional cash 2 Operating as a limited liability company is more risy than operating as a sole trader because the shareholders of @ business are liable for all the debts of tne business whereas the sole trader is only liable for the debts up to the amount he has invested, A 8 Pow © Both Land 2 D- Neither 1 or 2 (2 marks)BS 1.5 Which of the folowing best describes corporate governance? A Corporate governance is the system of rules and regulations surrounding financial reporting, B Corporate governance isthe system by which companies and cther entities are directed and controlled, © Corporate governance is carried out by the finance department in preparing the financial statements D Corporate governance is the system by which an entity moritors its impact on the natural environment (2 marks) 1.6 Identity which of the folowing statements are true o false 1 The directors of a company are ukimately responsible for the preparation of financial statements, even if the majority of the work on them is performed by the finance department, 2 financial statements are audited, then the responsiblity for those financial statements instead falls on the auditors instead of the cirectors 3 There are generally no laws surrounding the duties of directors in managing the affairs of a company, Lonly 2only 2 and 3 only Land 3 only (2 marks) com> 1.7 Which ONE of the folowing statements covtecily describes the contents of the Statement of Financial Position? A list of ledger it and credit columns © Arecord of income generated and expenditure incurred over a given period 1D —Arecard of tne amount of cash generated and used by a company ina given period (2 marks) 1.8 Which ONE of the following statements correctly describes the contents ofthe Statement of Profit or Loss? ‘A Ais of ledger balances shown in debit and credit columns B__Allistof all the assets owned and all the libilties owed by a business A record of the amount of cash generated and used by a company in @ given period (2 marks) 1.9 Which ofthe following are TRUE of partnerships? 1 The partners ncividual exposure to debt is mites, 2 Financial statements for the aartnership by law must be produced and made public 3 Aparinership is not a separate legal entity from the partners themselves. A Land 2 only B 2only D Land 3 only (2 marks) 8 on ®Questions 1.10 Which of the following statements is/are true? 1 Directors of companies have a duty of care to show reasonable competence in their management ofthe affairs of a company. 2 Directors of companies must act honestly in what they consider to be the best interest of the company, 3 Director's main aim should be to create wealth for the shareholders of the company. Land 2 only 2 only o> Land 3 only (2 marks) 1.11 Which of the following statements isiare tue? 1 The IFRS Interpretations Committee is a forum for the IASB to consult with the outside wort. 2 The IFRS Foundation produces IFRSs, The IFRS Foundation is overseen by the IASB. 3 One of the objectives of the IFRS Foundation isto bring about convergence of national accounting standards and IFRSs. A Land 3 only B 2only © 2and3 ony D Bony (2 marks) 1.12. What isthe role of the IASB? ‘A Oversee the standard setting and regulatory process B Formulate intemational financial reporting standards © Review defective accounts Contra! the accountancy profession (2 marks) 1.13 Which ONE of the following is NOT an objective ofthe IFRS Foundation? ‘A Through the IASB, develop a single set of globally accepted International Financial Reporting Standards (IFRSs) B Promote the use and rigorous application of International Financial Reporting Standards (IFRSs) Ensure International Financial Reporting Standards (IFRSs) focus primarily on the needs of Global, multi-national organisations D Bring about the convergence of national accounting standards and IFRS (2 marks) 1.14 Which ONE of the following statements cortectly describes how Intemational Financial Reporting Standards (IFRSs) should be used? ‘A To provide examples of best financial reporting practice for national badies who develop their own requirements B_ To ensure high ethical standards are maintained by financial reporting professionals, internationally © To facilitate the enforcement of a single set of global financial reporting standards D To prevent national bodies from developing their own financial reporting standards (2 marks) (Total = 28 marks)auestions Do you know? — The qualitative characteristics of financial information ‘Check that you can fil in the blanks inthe statements below before you attempt any questions. If in doubt, you should go back ta your BPP Interactive Text and revise first. + In preparing financial statements, accountants follow certain fundamental a. 8 TROIASBIS Cosscead Lk provides the basis for its IFRSs, ©The main underlying assumption is. + The Conceptual Framework states that characteristics are the attributes that rake the inforrration provided in financial statements useful to users, ‘+The four enhancing gualitative characteristics ae . and... ‘+ Other important qualitative characterstics and concepts include m.. e ‘and the business concent. OAL between qualitative characteristics is often necessary, the aim being to achieve an appropriate balance to meet the objective of financial staternents. oon PQ 3PTI insta kiens rman ul Could you fill n the blanks? The answers are in bold. Use this page for revision purposes as you approach the exam. + In preparing financial statements, accountants follow certain fundamental assumptions, ‘+The IASB's Conceptual Framework provides the basis fr ils IFRSS, + The main underlying assumption is going concern. +The Conceptual Framework states that qualitative characteristics are the attibutes that make the inforrration provided in financial statements useful to users. + The four enhancing qualitative characteristics are understandability, verifiabilty, timeliness and ‘comparability ‘+ Other important qualitative characteristics and concepts include materiality, prudence, consistency and the business entity concept. + Atrade off between qualitative characteristics is often necessary, the aim being to achieve an appropriate balance to meet the objective of financial statements. 10Questions The qualitative characteristics of financial informatit SM 2a Which accounting concept should be considered ifthe owner ofa business takes goods from inventory for their own personal use? ‘A The materiality concept B The acoruals concept © The going concern concept D The business entity concept (2 marks) 22 ‘Sales revenue should be recognised when goods and services have been supplied; costs are incurred ‘when goods and services have been received. ‘Which accounting concept governs the above? ‘A The business entity concept B The materiality concept © Theacervals concept D The duality concept (2 marks) 23 Which accounting concept states that omitting or misstating ths information could influence users of the financial statements? A The consistency concept B The accruals concept © The materiality concept The going concern concent (2 marks) 2b ‘According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful -epresentation? It is neutral Its relevant Its presented fairly Its fee from material error land2 2and3 Landa Band 4 (2 marks) Dome sun 28 Which ofthe following accounting concepts means that similar items should receive a similar accounting, treatment? A Conformity B Accruals © Matching D Consistency (2 marks) 26 Listed below are some characteristics of financial information, 1 Relevance 2 Consistency 3 Faithful representation 4 Aecuracy Which TWO of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for Financial Reporting? A Land 2 B 2and4 © 3and4 D Land3. (2 marks) "BS 2.7 Which ONE cof the following statements describes faithful representation, a qualitative characteristic of faithful representation? ‘A Reverue earned must be matched against the expenciture incurred in earning it, B Having information available to decision-makers in time to be capable of itl decisions, jencing their ©The presentation and classification af items in the financial statements should stay the same from fone period tothe next. D Financial information should be complete, neutral and free from error. (2 marks) 2.8 Listed below are some comments on accounting concepts 1 Financial statements always treat the business as a separate entity 2 Materiality means that only items having a physical existence may be recognised as assets. 3. Provisions are estimates and therefore can be altered to make the financial results of a business more atractve to investors. Which, if any, ofthese comments is corect, according to the IASB's Conceptual Framework for Financial Reporting? A Lonly B only © 3ony D None of them (2 marks) 2.9 Which of the following statements about accounting concepts and the characteristics of financial Inforrnation are correct? 1 The concept af accruals requires transactions to be reflected in the financial statements once the cash or its equivalent is received or paid. 2 Information is material i its omission or misstatement could influence the economic decisions of users taken on the basis ofthe financial statements, Based on faithful representation, it may sometimes be necessary to exclude material information from financial statements cue to dificulties establishing an accurate figure. Lonly Land 2 only 2only 2and 3 only (2 marks) pour 2.10 The IASB's Conceptual Framework for Financial Reporting gives sx qualitative characteristics of financial information, What are these six characteristics? ‘A Relevance, Faithful presentation, Comparabiliy, Verfabilty, Timeliness and Uncerstandabilily B Accuracy, Faithful representation, Comparability, Venfiabilty, Timeliness and Understardability © Relevance, Faithful representation, Consistency, Verfability, Timeliness and Understandability, D Relevance, Comparabilty, Consistency, Verifiability, Timeliness and Understandebilty (2 marks) 2,11 Which one ofthe following is NOT a qualitative characteristic of financial information according tothe Conceptual Framework for Financial Reporting? ‘A Faithful representation B Relevance © Timeliness D Accruals (2 marks) 2 on ®Questions 2.12 According to the IASB Conceptual Framework which of the follawing is NOT an objective of financial statements? ‘A Providing information regarding the financial position of a business B Providing information regarding the performance of a business © Enabling users to assess the performance of management to aid decision making D Providing reliable investment advice (2 marks) 2.13. Identify, by indicating the relevant box in the table below, whether each of the following statements is 214 conect or incorrect, ‘Companies should never Correct Treorrect change the presentation or classification of items in teir financial statements, even if there is a significant change in the nature of operations. ‘Companies should create provisions in times of carmpany {growth to be utilised in more dificult times, to smooth pois. (2 marks) Which ofthe following statements about prudence is correct? ‘A Prudence requires assets to be carried at their lowest possible valuation B When prudence is applied, income is nat recagrised until the cash has been received © Aprudent decision will mean lower expenditure Prudence does nat allow for overstatement of lailties (2 marks) “@ 8Questions ‘Check that you can fil in the blanks in the statements below before you attempt any questions. If in doubt, Yyou should go back to your BPP Interactive Text and revise first. + Business transactions are recorded on s. d Examples include sales and purchase Fe, onsen ae + Books of are books in which we fist record transactions +The main books of prime entry are @ day book 3) day book rc) ay book (0) coicctinane sseneenes 8 BOOK (deel 0 book ® book: © Entries in the are totalled and analysed before posting to the n....... ledger. + The and ledgers contain the personal accounts of individual customers and supplies, They do not normally form part of the double-entry system, # The becos @onesnn Comoep means that a business i always treated separately from its nner) +The accounting equation is 4 UABILITIES = canon + PROFIT + Trade accounts payable F€ Levnsssens Trade accounts receivable a a + In-double entry bookkeeping every transaction is recorded .... $0 that ev is balanced by a + Adebit entry will: - an asset - snes 8 Fability - esses 20 @xPense - an asset - cones 8 Fability of the double entry accounting records. oO” and ledger account is opened up to gather all tems relating to income and expenses. ‘When rearranged, the items make up the ol Q ‘8BS ‘Could you fll n the blanks? The answers are in bold. Use this page for revision purposes as you approach the exam. + Business transactions are recorded on source documents, Examples include sales and purchase arders, invoices and credit notes. + Books of prime entry are books in which we fist record transactions +The main books of prime entry are (2) Sales day book (b) Purchase day book (©) Sales returns day book (@) Purchase returns day tock (6) Journal (Cash book (@) Petty cash book + Entries in the day books are totalled and analysed before posting to the nominal ledger. + The receivables and payables ledgers contain the personal accounts of individual customers and suppliers. They do not normally form part of the dauble-entry system, + The business entity concept means that a business is always treated separately from its owner(s). + The accounting equation is: ASSETS ~ CAPITAL + LIABILITIES - DRAWINGS + PROFIT + Trade accounts payable are liabilities. Trade accounts receivable are assets. + In-double entry bookkeeping every transaction is recarded twice sa that every debit 's balanced by @ credit. © Adebit entry will: + Increase an asset © Decrease 2 liability © Increase an expense © Acredit entry wil + Decrease an asset © Increase a liability © Increase income + Atrial balance can be used to test the aceuracy of the double entry accounting records. + Approfit and loss ledger account 's opened up to gather al tems relating to income and expenses. When rearranged, the items make up the statement of profit or loss ‘6 on ®Questions DO Ce mee CCT al 3,1 Which one ofthe following can the accounting equation can be rewritten as? A Assets + profit — drawings libiltes = closing capital B Assets — liabilities ~ crawings = opening capital + profit, © Assets — liabilities - opening capital + drawings = profit 1D Assets ~ profit- drawings = closing capital — liabilities (2 marks) 3.2 Atrader’s net profit for the year may be computed by using which of the following formulae? ‘A Opening capital + drawings ~ capital introduced ~ closing capital B_Closing capital + drawings ~ capital introcuced ~ opening capital © Opening capital - drawings + capital introduced ~ closing capital D Opening capital - drawings — capital introcuced ~ closing capital (2 marks) 3.3. The profit earned by a business in 20X7 was $72,500, The proprietor injected new capital of $8,000 during the year and withdrew goods for hs private use which had cost $2,200, If net assets at the beginning of 20X7 were $101,700, what were the closing net assets? A $35,000 B $39,400 c $168,400 D $180,000 (2 marks) 3.¢ The profit made by a business in 20X7 was $35,400. The proprietor injected new capital of $10,200 during the year and withdrew a monthly salary a $500, If net assets at the end of 20X7 were $95,100, what was the proprietors capital at the beginning of the year? 8 (2 marks) 3,5 A sole trader took some goods costing $800 from inventory for his own use, The normal selling price of the goods is $1,600. Which ofthe following journal entries would correctly record this? DEBIT oREDIT $ 8 ‘A Inventory account 800 Purchases account 00 B Drawings account 800 Purchases account 800 © Sales account 1,600 Drawings account 1,600 D Drawings account 800 Sales account 800 (2 marks) 3.6 Abusiness can make a profit and yet have a reduction in its bank balance, Which ONE of the following might cause this to happen? The sale of non-current assets at a loss The charging of depreciation in the statement of profit of loss The lengthening of the period of credit given to customers The lengthening ofthe period of credit taken from suppliers (2 marks) come 7BS 3.7 Thenet assets of Altese, 2 trader, at 1 January 20X2 amounted to $128,000. During the year to 31 December 20X2 Altese introcuced a further $50,000 of capital and made drawings of $48,000. At 31 December 20X2 Alteses net assets totalled $184,000, What is Alteso's total protitor lass for the year endec 31 December 20X27 A $54,000 profit B $54,000 loss © $42,000 loss D $58,000 profit (2 marks) 3,8. Jones Co has the following transactions: 1 Payment of $400 to J Bloggs for a cash purchase 2 Payment of $250 to J Doe in respect of an Invoice for goods purchased last month What are the correct ledger entries to record these transactions? ‘A DEBIT cash $650 ‘CREDIT Purchases $650 B DEBIT Purchases $650 (CREDIT Cash $650 © DEBIT Purchases $400 DEBIT Trade Payables $250 (CREDIT Cash $650 DEBIT Cash $650 ‘CREDIT Trade Payables $250 CREDIT Purchases $400 (2 marks) 3.9 T Tallon hac the following transactions: 1 Sale of goods on credit for $150 to F Rogit 2 Return of goods trom 8 Blendigg originally sold for $300 in cash to B Blendigg What are the correct ledger entries to record these transactions? A DEBIT Receivables $150 DEBIT Sates Returns $300 (CREDIT Sales $150 CREDIT Cash $300 B DEBIT Sales $150 DEBIT Cash $300 ‘OREDIT Receivables $150 CREDIT Sales Returns $300 © DEBIT Receivables $450 ‘CREDIT Sales $150 GREDIT Sales Returns $300 D DEBIT Sales Returns $300 DEBIT Sales $150 (CREDIT Cash $450 (2 marks) 3,10 Which ofthe following documents should accompany a return of goods to a supplier? A Debit note B Remittance advice © Purchase invoice D Credit note (2 marks) * on ®Questions 3.11 Which of the following are books of prime entry? 1 Sales day book 2 Cash book 3 Journal 4 Purchase ledger A 1,2and3 only B 1, 2and 4 only Band 4 only D Allo them (2 marks) 3.12. Inwhich book of prime entry will a business record debit notes in respect of goods which have been sent back to suppliers? ‘A The sales returns day book B The cash book Tne purchase returns day book The purchase day book (2 marks) 3.13. Accompany’s motor vehicles at cost account at 30 June 20X6 is as follows: MOTOR VEHICLES - COST s $s Balance bid 150,500 Disaosal 85,000 Additions 120,950 Balance old 186,450 Z7LA50 What opening balance should be included in the following period! trial balance for motor vehicles ~ cost at 1 July 20x67 A $271,450 DEBIT 8 $271,450 DEBIT © $186,450 CREDIT D $186,450 DEBIT (2 marks) 3.14 Accompany’ trade payables account at 30 September 20X1 is as follows: TRADE PAYABLES ACCOUNT 8 s ‘cash at bank 21,600 Balance b/é 14,000 Balance cid 11,900 Purchases 19,500 ‘What was the balance for trace payables in the Wrial bance at 1 October 20X0? A $14,000 DeBIT B $14,000 CREDIT © $11,900 DEBIT D $11,900 CREDIT (2 marks) 3.15. Which of the folowing would be recorded in the sales day book? cash received Sales invoices Credit notes received Trade discounts (2 marks) coa> 19BS 3.16 Identity, by indicating the relevant box inthe table below, whether each of the following statements is true a false, TR debit records an mnerease ir Tre False liabilities, ‘A debit records a decrease In Tie False assets, ‘A credit records an increase Ta Te False liabilities, ‘credit records an decrease 1m Tie False capital (2 marks) 3.17 How is the total of the purchases day book posted to the nominal ledger? ‘A Debit purchases, Credit cash B Debit payables contr, Credit purchases © Debit cash, Credit purchases D Debit purchases, Crecit payables control (2 marks) 3,18 Which one of the following statements about an imprest system of petty cash is comect? ‘A Animprest system for petty cash controls small cash expencitures because a fixed amount is paid into petty cash at the beginning of each period. B_ The imprest system provides a control over petty cash spending because the amount of cash held in petty cash at any time must be equal ta the value of the petty cash vouchers for the period, © An imprest system for petty cash can operate without the need for petty cash vouchers or receipts for spending D An imprest system for petty cash helps witn management of small cash expenditures and reduces the risk of fraud (2 marks) 3,19 Which one ofthe folowing provides evidence that an item of expenditure on petty cash has been ‘approved or authorised? Petty cash voucher Record of the transaction inthe petty cash book Receipt for the expense ‘Transter of cash fram the bank account into petty cash (2 marks) some ‘The following information is relevant for Questions 4.1 and 4.2. ‘On 1 May 20X9 Marshall's cash book showed a cash balance of $224 and an overdraft of $336, During the ‘week ended 6 May the following transactions took place, May 1 Sold $160 of goods to P Dixon on credit. May 1 Withdrew $50 of cash from the bank for business use. May 2 Purchased goods priced at $380 from A Clarke, on credit, less 15% trade discount, May 2 Repaic a debt of $120 owing to R Hill, taking advantage of a 10% settlement discount. The payment was by cheque, May 3 Sold $45 of goods for cash May 4 Sold $80 of goods to M Maguire on crecit, offering a 12"/)% discount if payment mace within 7 days, Marshall expects Maguire to take up this discount. May 4 Paid 2 telephone bill of $210 by cheque, 20 BPP @Questions May 4 Purchased $400 of goods on credit from D Daley. May 5 Received a cheque ‘om H Larkin for $180. May 8 Sold $304 of goods to M Donale on credit May 5 Purchased $135 of goods from Honour Co by cheque. May 6 Received a cheque from D Randle for $482, May 6 Purchased $100 of goods on credit from G Perkins. 4,1 What isthe total of the sales day book? $. (2 marks) 4,2 What isthe total ofthe purchases day book? s_ (2 marks) 4,3. Smith Co has the following transactions: 1 Purchase of goods on credit from T Rader: $450, 2 Return of goods purchased on credit last month to T Rouble: $700 What are the correct ledger entries to record these transactions? ‘A DEBIT Purchases $450 DEBIT Purchase Returns $700 CREDIT Cash $450 CREDIT Trade Payables $700 B DEBIT Purchases, $450 DEBIT Trade Payables $700 CREDIT Purchase Returns $1,150 © DEBIT Purchases $450 DEBIT Trade Payables $250 CREDIT Purchase Returns $700 D DEBIT Purchase Returns $700 DEBIT Purchases $450 CREDIT Trade Payables $1,150 (2 marks) 4.4 — Mew Ling has the following transactions: 1 Receipt of casn from R Singh in respect of an invoice for goods sold three weeks ago 2 Receipt of cash from $ Kalu for cash sales ‘What are the ledger entries required to record the above transactions? ‘A DEBIT cash CREDIT Sales B DEBIT Cash (CREDIT Sales CREDIT Trade Receivables © DEBIT Sales CREDIT Cash D DEBIT Trade Receivables DEBIT Sales CREDIT Cash (2 marks) 24BS 4.5 How is the total ofthe sales day beok recorded in the nominal ledger? beeir cREDIT A Receivables Receivables Leager Control Aecount B Receivables Receivables Control Account Ledger © Sales Receivables Control Account D Receivables Sales, Control Account (2 marks) 4.6 Identity by indicating the relevant box in the table below, whether eaci of the staternents is true or false. TR ebit entry iv the cash book True False will increase an overdraft in tre accounts, ‘A debit entry 1 the cash book. The False will increase a bank balance in the accounts (2 marks) 4.7 An accountant has inserted all the relevant figures into the trade payables account, but has aot yet balanced off the account, TRADE PAYABLES ACCOUNT 8 $ ‘cash at bank 100,750 Balance bid 250,225 Purchases 325,010 ‘Assuming there are no other entries to be made, other than to balance off the account, what isthe closing balance on the trade payables account? A $474,485 DEBIT B $575,235 DEBIT © $474,485 CREDIT D $575,235 CREDIT (2 marks) 4.8 You are given the following information: Receivables at 1 January 20X3 $10,000, Receivables at 31 December 20x3 $9,000 Total receipts during 20X3 (including cash sales of $5,000) $85,000 What are sales on credit during 20X3? A $81,000 B $86,000 © $79,000 > $84,000 (2 marks) 4.9. Abusinass sells $100 worth of goods ta a customer, the customer pays $60 in cash immediately and will pay the remaining $50 in 30 days time, What is the double entry to record the purchase in the customer's accounting records? DEBIT cash $50, CREDIT payables $50, CREDIT purchases $50 DEBIT payables $50, DEBIT cash $50, CREDIT purchases $100 DEBIT purchases $100, CREDIT payables $50, CREDIT cash $50 DEBIT purchases $100, CREDIT cash $100 (2 marks) 22 BPP @ pom>Questions 410 Tin Co purchases $250 worth of metal from Steel Co. Tin Co agrees to pay Steel Co in 60 days! time. From the list of tokens below, identity the tokens needed to record the correct entries in Steel Co's books, foe a aes Sales $250 Receivables $260 Credit entry Purchases $250 Payables $250 Cash $250 413 4d “@ (2 marks) ‘The following totals appear in the day books for March 20X8. $ Sales day book 40,000 Purchases day book 20,000 Returns inwards day book 2,000 Returns outward day book 4,000 ‘Opening and closing inventories are both $3,000, What isthe gross profit for March 20X8? A $22,000 B $24,000 © $20,000 D $18,000 (2 marks) William's tial balance at 30 September 20XS includes the following balances: Trade receivables $75,943 Receivables allowance $4,751 How shaulé these balances be reported in William's statement of financial position as at ‘30 September 20X5? An asset of $71,192 B —_Anasset of $75,943 and a liability of $4,751 © Aliabilty of $71,192 D — Aliabilty of $75,943 and an asset of $4, 51 (2 marks) ‘A vial balance is made up of alist of debit balances and credit balances, Which ofthe following statements is correct? Every debit balance represents an expense, Assets are represented by debit balances, Liabilities are represented by debit balances. Income is included in the list of debit balances. (2 marks) coer [At 30 November 20X5 Jenny had a bank loan of $8,500 and a balance of $678 in hand in her bank ‘account, How should these amounts be recorded on Jenny's opening tral balance at 1 December 20X57 A DEBIT $7,822 B GREDIT $7, CREDIT $8,500 and DEBIT $678 D DEBIT $8,500 and CREDIT $678 (2 marks) 23BS 4.15 Bert has exacted the following lst of balances from his general ledger at 31 October 20X5: $ Sales 258,542 Opening inventory 9,649 Purchases 142,958 Expenses 34,835 Non-current assets (carrying amount) 63,960 Receivables 31,746 Payables, 13,864 (cash at bank 1,783 Capital 12,525 What is the total ofthe cebit balances in Bert's tral balance at 31 October 20X85? A $267,049 B $275,282 $283,148 D $284,931 (2 marks) 4.16 At 31 October 20X6 Rogers trial balance included the following balances: s Machinery at cost 12,890 Accumulated deprecation 8,950 Inventory 5,754 Trade receivables 11745 “Trade payables 7830, Bank overdraft 1,675 ‘Cash at bank 150 What is the value of Rogers current assets at 31 October 20X6? A $17,649 B $17,499 c $15,974 D $13,734 (2 marks) 4.17 Which ONE of the fllowing statements does NOT cescribe a way in which an effective accounting system facilitates the provision of useful accounting information? By requiring authorisation in ine with organisational policies By processing and recording transactions in accordance with accounting rules By preventing transactions ‘rom being processed inaccurately By enabling transactions to be recorded as necessary to permit preparation of financial statements (2 marks) com> 4.18. Which of the following statements isfare TRUE or FALSE? Cash purchases are recorded in the purcrases cay book. “The sales day books is used to keep a lst of invoices received from supplier, Both statements are TRUE Both statements are FALSE Statement 1 Is TRUE and statement 2 is FALSE Statement 1 is FALSE and statement 2 is TRUE (2 marks) poe> we 2 on ®