FAC1503 Assignment 4
(QUIZ) Semester 1 2023
Contact:
@ TestbanksNotesAssignmentsAndExamspack
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, Faithful representation of information means that only information which is
significant enough needs to be separately disclosed. Minor items must be
included in the financial statements but need not be separately disclosed.
True
False
Answer Key:False
Feedback:Refer to section 1.5.4 of learning unit 1
Question 2 of 28
1.0/ 1.0 Points
SA attorneys spend R2300 on goods not utilised for earning taxable income. SA
Attorneys may not claim input VAT on the goods because it is specifically
excluded in the VAT Act.
True
False
Answer Key:True
Feedback:Refer to learning unit 3.4.7
Question 3 of 28
1.0/ 1.0 Points
In terms of IFRS, a statement of cash flows, which reflects the actual cash
movements in and out of the entity for a specific period should form part of an
entity's financial statements.
True
False
Answer Key:True
, Feedback:Refer to section 1.6 of learning unit 1
Question 4 of 28
1.0/ 1.0 Points
Neutrality refers to the fact that the information and disclosure in the
financial statements must be such that different knowledgeable and independent
observers can reach consensus that it is a faithful representation.
True
False
Answer Key:False
Feedback:Refer to section 1.5.4 of learning unit 1
Question 5 of 28
1.0/ 1.0 Points
As from 8 January 2016 the accurate description of goods and and/or services,
indicating where applicable that the goods are second hand goods must be
reflected on all tax invoice even where the consideration (price) does not
exceed R5 000 for it to be considered valid.
True
False
Answer Key:True
Feedback:Refer to learning unit 3.4.9
Question 6 of 28
1.0/ 1.0 Points
A client’s ledger is an accounting report showing all the closing balances of
the general ledger accounts that is prepared at a specific time in the
financial year.
True
, False
Answer Key:False
Feedback:Refer to learning unit 5.10
Question 7 of 28
1.0/ 1.0 Points
In terms of section 68 of the LPA and the LPC Rules, a legal practitioner must
keep a separate trust bank account at a banking institution in the Republic,
and in this account must deposit the money held or received by the attorney on
behalf of any person.
True
False
Answer Key:False
Feedback:Refer learning unit 4.6.2
Question 8 of 28
1.0/ 1.0 Points
With the periodic inventory system, the lack of accurate, real time inventory
information could lead to inefficient management of inventory.
True
False
Answer Key:True
Feedback:Refer to learning unit 3.2.3
Question 9 of 28
1.0/ 1.0 Points
A delivery note is a source document prepared by the buyer at the point of
receipt, recording the receipt of goods. The delivery note and the purchase
(QUIZ) Semester 1 2023
Contact:
@ TestbanksNotesAssignmentsAndExamspack
sGuru
+254742508812, +254727097655.
, Faithful representation of information means that only information which is
significant enough needs to be separately disclosed. Minor items must be
included in the financial statements but need not be separately disclosed.
True
False
Answer Key:False
Feedback:Refer to section 1.5.4 of learning unit 1
Question 2 of 28
1.0/ 1.0 Points
SA attorneys spend R2300 on goods not utilised for earning taxable income. SA
Attorneys may not claim input VAT on the goods because it is specifically
excluded in the VAT Act.
True
False
Answer Key:True
Feedback:Refer to learning unit 3.4.7
Question 3 of 28
1.0/ 1.0 Points
In terms of IFRS, a statement of cash flows, which reflects the actual cash
movements in and out of the entity for a specific period should form part of an
entity's financial statements.
True
False
Answer Key:True
, Feedback:Refer to section 1.6 of learning unit 1
Question 4 of 28
1.0/ 1.0 Points
Neutrality refers to the fact that the information and disclosure in the
financial statements must be such that different knowledgeable and independent
observers can reach consensus that it is a faithful representation.
True
False
Answer Key:False
Feedback:Refer to section 1.5.4 of learning unit 1
Question 5 of 28
1.0/ 1.0 Points
As from 8 January 2016 the accurate description of goods and and/or services,
indicating where applicable that the goods are second hand goods must be
reflected on all tax invoice even where the consideration (price) does not
exceed R5 000 for it to be considered valid.
True
False
Answer Key:True
Feedback:Refer to learning unit 3.4.9
Question 6 of 28
1.0/ 1.0 Points
A client’s ledger is an accounting report showing all the closing balances of
the general ledger accounts that is prepared at a specific time in the
financial year.
True
, False
Answer Key:False
Feedback:Refer to learning unit 5.10
Question 7 of 28
1.0/ 1.0 Points
In terms of section 68 of the LPA and the LPC Rules, a legal practitioner must
keep a separate trust bank account at a banking institution in the Republic,
and in this account must deposit the money held or received by the attorney on
behalf of any person.
True
False
Answer Key:False
Feedback:Refer learning unit 4.6.2
Question 8 of 28
1.0/ 1.0 Points
With the periodic inventory system, the lack of accurate, real time inventory
information could lead to inefficient management of inventory.
True
False
Answer Key:True
Feedback:Refer to learning unit 3.2.3
Question 9 of 28
1.0/ 1.0 Points
A delivery note is a source document prepared by the buyer at the point of
receipt, recording the receipt of goods. The delivery note and the purchase
