Question

7 What would result in cash coming into a business? A B C D a transfer to general reserve an issue of bonus shares proceeds from the sale of a non-current asset the revaluation of an asset 8 A sole trader has the following information available for rent and rates for a year. $ 750 opening accrual bank payments during the year closing prepayment 2650 850 What is the rent and rates expense to be included in the income statement for the year? A $1050 B $2550 C $2750 D $4250

Answer 1

7. Cash coming into business = an issue of bonus shares

Option B is correct answer.

8. Rent and rates expense = $2650 - 750 - 850 = $1050

Option A is correct answer.