Question

Answer ALL questions. WIE S (20 MARKS) QUESTION 1 MULTIPLE CHOICE REQUIRED For each of the questions below write down only the letter of the most appropriate answer e.g. 1.11 C. Note: Calculations must not be shown in your answer book. Which one of the following statements is false? The financial result of an enterprise is a measure of the profit or loss that the enterprise made over a certain period of time. Expenses decrease economic benefits to a business and thus decrease equity. Liabilities are the debts of an enterprise. Assets are the possessions of an entity that have no monetary value. 1.2 Which one of the following accounts is not an example of an expense? Furniture Electricity Consumable stores Telephone 1.3 Machinery was purchased on credit for R25 000 by Zola Traders. The effect of this transaction on the accounting equation of Zola Traders is: Assets Equity Liabilities +R25 000 0 -R25 000 +R25 000 +R25 000 -R25 000 +R25 000 +R25 000 +R25 000 1.4 Liabilities Sales es Accrued income Which one of the following classification of accounts is correct? Assets Income Motor vehicles Creditors control Bad debts recovered Cash float Discount received Accrued income Rent income Debtors control Loan: AB Bank Prepaid expenses (1)

Answer 1

Ans. (1.1)	(D) Assets are the Possessions of an entity that have no monetary value
Ans. (1.2)	(A) Furniture
Ans. (1.3)		Assets	Equity	Liabilities
	(D)	R25,000	0	R25,000
Ans. (1.4)		Assets	Equity	Liabilities
	(C)	Cash Float	Discount Received	Loan: AB Bank