FAC1503 Assignment 1 - 5 Answers, searchable.

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Part 1 of 5 - 10 0/ 10.0 Points

Question 1 of 35
1.0/ 1.0 Points




An attorney's practice has four main categories (business, trust, investment and
correspondents) of income and expenses within in the practice.
True

False



Answer Key: False
Feedback:Refer learning unit 4.5




Question 2 of 35
1.0/ 1.0 Points




The financial statements are prepared at the end of the financial period but before
the statements are prepared the correctness of the accounting records need to be
assured.
True
✓
False



Answer Key: True
Feedback: Refer learning unit 4.8




Question 3 of 35
1.0/1.0 Points




Interest charges to clients accounts that are in arrears will be recorded in the general
journal.
True
✓
False



Answer Key: True
Feedback:Refer learning unit 4.8




Question 4 of 35
1.0/ 1.0 Points




The amounts recorded in the general journal are posted as one total to the various
accounts in the general ledger, clients and trust creditors ledgers.
True
✓
False



Answer Key: False
Feedback: Refer learning unit 4.8

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Question 5 of 35
1.0/ 1.0 Points




When a business makes a payment to a creditor, the transaction will result in an
increase (debit entry) in an asset account and an increase (credit entry) in a liability
account
True
✓
False



Answer Key:False
Feedback:Refer learning unit 4.2




Question 6 of 35
1.0/ 1.0 Points




Accrued income is income that has not been received in the accounting period when
the underlying obligation was fulfilled.
True

False



Answer Key: True
Feedback:Refer learning unit 4.8




Question 7 of 35
1.0/ 1.0 Points




There is more information about the transactions recorded in the general ledger,
which prevents the entering of too much detail in the cash receipts journal and cash
payments journal.
True
False



Answer Key: False
Feedback: Refer learning unit 4 5.1




Question 8 of 35
1.0/ 1.0 Points




In step 2 of the cash receipts procedures; the staff member responsible for the bank
reconciliation must draw bank statements on an annual basis to see if there are any
EFT deposits in the bank account. A copy of the bank statement must be filed in the
trust creditor’s file and handed over to the attorney for his instructions.
True
v'
False



Answer Key:False

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Question 9 of 35
1.0/ 1.0 Points




It is not always the person who pays the amount (eg. in the case of a property
transaction) whose account must be credited and therefore it is important to
include the details of the client on the receipt.
True
False



Answer Key: True
Feedback:Refer learning unit 4.6.2




Question 10 of 35
1.0/ 1.0 Points




In an attorney's practice fees charged to each client on whose behalf services are
rendered is recorded in the trust cash receipts journal.
True

False



Answer Key: False
Feedback: Refer learning unit 4.7




Part 2 of 5 - Part 2 4.0/ 5.0 Points

Question 11 of 35
0.0/ 1.0 Points




On 18 October 2020, SA Attorneys received a statement from the Sheriffs office to
the amount of R50 for the delivery of a summons to Mr A South. This transaction
will be entered in the .... as book of first entry.

• A. transfer journal

• B. sheriffs journal

• C. trust cash payments journal

• X D. business cash payments journal




Answer Key:B
Feedback:
Refer to learning unit 4.8




Question 12 of 35
1.0/ 1.0 Points

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Question 12 of 35
1.0/ 1.0 Points




SA Traders operates as a hardware store and is a registered VAT vendor. The
applicable tax rate is 15%. SA Traders makes use of the periodic inventory system,
as well as control accounts. The transaction amounts are VAT inclusive where
applicable.

On 4 August 2020, Rod Traders purchased stationery for use in the office and paid
R1 120 in cash. The transaction will be entered into the .... as book of first entry.

• A. cash receipts journal

• B. general journal

• ✓ C. cash payments journal

• D. purchases journal




Answer Key:C
Feedback:
Refer to learning unit 4.4




Question 13 of 35
1.0/ 1.0 Points




Which one of the following statements correctly describes the purpose of the
Sheriff's journal?

• ✓ A. To record claims for services rendered on credit by sheriffs.

• B. To record cash payments made for services rendered by sheriffs

• C. To record claims for services rendered on credit to sheriffs.

• D. To record cash payments received for services rendered to sheriffs.




Answer Key: A
Feedback:
Refer to learning unit 4.3




Question 14 of 35
1.0/ 1.0 Points




On 18 February 2021, Mr A South, a partner of SA Attorneys took one of the
redundant computers of SA Attorneys for personal use by his son. The transaction
will be entered in the ...as book of first entry

• A. Transfer journal

• B. No entry is needed.

• C. Fees journal

• D. General journal