FAC1601 ASSIGNMENT 1 Semester 2 2023 (ANSWERS)

FAC1601 ASSIGNMENT 1 Semester 2 2023 (ANSWERS) Question 1 Answer saved Marked out of 1.00 Question 2 Answer saved Marked out of 1.00 Question 3 Answer saved Marked out of 1.00 QUIZ The definition of a liability is: A. A future economic resource controlled by a reporting entity as a result of a past event. B. A future economic resource controlled by a reporting entity as a result of a future event. C. A present economic resource controlled by a reporting entity as a result of a past event. D. A present obligation of a reporting entity, to transfer an economic resource as a result of a past event. Clear my choice Which of the following measurement bases will often be encountered in a set of financial statements: A. Present value B. Historical cost C. Fair value D. All of the above Clear my choice Which of the following statements is correct: A. A liability is a future obligation of a reporting entity to transfer an economic resource as a result of a past event. B. The accounting equation is: Assets = equity + liability . C. The value of a reporting entity lies in the total assets (current + non-current) under its control. D. Equity is the residual interest in the assets of the entity after deducting all the expenses. Clear my choice Time left 0:25:44 S - The study-notes marketplace Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 4 Answer saved Marked out of 1.00 Question 5 Answer saved Marked out of 1.00 Question 6 Answer saved Marked out of 1.00 The statement of financial position consists of three elements namely: A. Liabilities, equity and expenses B. Liabilities, income and expenses C. Assets, income and expenses D. Assets, liabilities and equity Clear my choice Daliwonga purchased a Crane for his construction business. Which one of the following expenses should be included in the cost the machine: A. Crane cost B. Delivery costs C. Installation costs D. All of the above Clear my choice Insurance expenses paid by an entity for the current financial year is recorded in the financial statements as: A. A prepayment in the non-current assets section of the statement of financial position. B. A prepayment in the current assets section of the statement of financial position. C. An expense in the statement of profit or loss and other comprehensive income. D. An expense in the statement of changes in equity Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 7 Answer saved Marked out of 1.00 Question 8 Answer saved Marked out of 1.00 Question 9 Answer saved Marked out of 1.00 Which one of the following alternatives is incorrect? A. The purpose of the Conceptual Framework is to assist users in interpreting the information in interpreting the financial statements when compiled according to IFRS. B. The purpose of the Conceptual Framework is to assist in developing future standards. C. The purpose of the Conceptual Framework is to override any particular disclosure or measurement requirement in any IFRS. D. The purpose of the Conceptual Framework is to assist in harmonising legislation and reducing the number of alternative accounting treatments. Clear my choice Telephone expense paid in advance at the end of an entity’s financial year will be recorded in the general journal of the entity by: A. Debiting bank and crediting telephone expense B. Debiting pre-paid expense and crediting Bank C. Debiting telephone expense and crediting bank D. Debiting accrued expense and crediting bank Clear my choice Relevance and faithful representation are the… A. fundamental qualitative characteristics of financial reporting as stipulated in the Conceptual Framework. B. enhancing qualitative characteristics of financial reporting as stipulated in the Conceptual Framework. C. enhancing qualitative characteristics of the disclosure requirements as stipulated in IFRS. D. fundamental qualitative characteristics of financial reporting as stipulated in IFRS. Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 10 Answer saved Marked out of 1.00 Question 11 Answer saved Marked out of 1.00 Question 12 Answer saved Marked out of 1.00 Which one of the following is an example of a financial instrument: A. Depreciation B. Property, Plant and Equipment C. Financial Liability D. Inventory Clear my choice Golifili, a legal firm, is owned by Ms Dukada and has a financial year end of 28 February 2023. Computer equipment was purchased by the business on 01 June 2022 for an amount of R30 000. Depreciation for equipment is provided for on the diminishing balance method at a rate of 15% per annum. The opening balance of accumulated depreciation was R45 000. The opening balance of computer equipment is R60 000 Which one of the following amounts represents the correct amount that must be disclosed as depreciation expense in the statement of profit or loss and other comprehensive income of Golifili for the year ended 28 February 2023? A. R7 000 B. R5 625 C. R4 100 D. R6 250 Clear my choice Eatary, a catering company, is owned by Ms Awovuyo and has a financial year end of 28 February 2022. Catering equipment was purchased by the business on 01 September 2021 for an amount of R100 000. Depreciation for catering equipment is provided for on the straight line method at a rate of 20% per annum. The opening balance of accumulated depreciation was R300 000. The opening balance of catering equipment is R700 000 Which one of the following amounts represents the correct amount that must be disclosed as depreciation expense in the statement of profit or loss and other comprehensive income of Eatery for the year ended 28 February 2022? A. R170 000 B. R150 000 C. R150 625 D. R140 100 Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 13 Answer saved Marked out of 1.00 Question 14 Answer saved Marked out of 1.00 Gcinibandla is a partnership between Nkunzi and Majali. The partnership allows for the following: The partners are entitled to a monthly salary allowance of: Nkunzi R10 000 per month, Majali R5 000 per month. Majali was granted a bonus of R50 000. Interest on capital at 10% p.a. on the capital balances. No adjustments have been made for the salaries and bonus paid. Gcinibandla had the following balances as at 28 February 2023. Balances as at 28 February 2023 Capital:Nkunzi-Cr Capital:Majali-Cr Current:Nkunzi-Cr 80000 Current:Majali-Cr Drawings:Nkunzi-Dr 96400 Drawings:Majali-Dr 83400 What is the balance of the Drawings account of Gcinaibandla at the end of 28 February 2023? A. R409 800 B. R410 123 C. R356 233 D. R350 010 Clear my choice Which of the following should not be included in the calculation of the sales amount for Highness for the year ending 31 December 2022? A. Sales B. Sales returns C. Purchases D. Settlement discount granted Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 15 Answer saved Marked out of 1.00 Question 16 Answer saved Marked out of 1.00 Question 17 Answer saved Marked out of 1.00 Which of the following is an expense? A. Equipment B. Sales C. Dividends received D. Cost of sales Clear my choice Umthombo, a water purification business has a 28 February 2023 year end. It made sales of R304 000, Depreciation of R36 200, Advertising of R2 500 and salaries and wages of R53 000. Calculate the profit for the year ended 28 February 2023. A. R312 400 B. R230 200 C. R212 300 D. R150 200 Clear my choice The following information relates to Jabulani Fabrics (Jabulani). 1.Total Sales of R850 000 for the year ending 28 February 2023. 2.The following transactions were not accounted for: • On the 3rd of January 2023 Jabulani fabrics sold fabrics valued at R280 000 to Mai Mai stores on credit, this is the only transaction for the 2023 year between Jabulani and Mai Mai. Jabulani allows a discount of 15% on accounts settled within 30 days. • On the 01st February 2023 Mai Mai settled their account in full. Which one of the following alternatives represents the sales amount Jabulani fabrics will disclose in its statement of profit or loss and other comprehensive income? A. R1 139 000 B. R1 088 000 C. R1 130 000 D. R1 120 000 Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 18 Answer saved Marked out of 1.00 Question 19 Answer saved Marked out of 1.00 Nozulu received a statement for the company cellphone as at 31 December 2022, the financial year end, showing an overpayment of 6 months of R20 000. Nozulu also moved to new premises 1 August 2022 and pays a rental amount of R85 000 every month. Nozulu paid rent for 6 months on 1 August 2022 What is the prepayment amount that must be shown in the statement of financial position of Nozulu for the year ending 31 December 2022? A. R201 933 B. R102 833 C. R105 000 D. R104 333 Clear my choice On 28 February 2023, Kuselo and Nande decided to form a partnership trading as Yonayethu The partnership will commence trading on 1 March 2023 and both partners will be actively involved in the partnership. Kuselo and Nande accordingly drew up the partnership agreement stipulating the following: Kuselo will contribute R100 000 in cash towards the capital of the business. Nande will contribute R40 000 in cash, a delivery vehicle with a fair market value of R60 000 and office equipment worth R50 000. What is the total capital contributed as at 1 March 2023 for Yonayethu? A. 110 000 B. 140 000 C. 250 000 D. 200 000 Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 20 Answer saved Marked out of 1.00 Question 21 Answer saved Marked out of 1.00 Questions 20 – 26 are based on the following: Ndzamela Traders a partnership between Sandile and Siyasanga. Its year end is 30 June 2023 Additional information · The partners, Sandile and Siyasanga share profits in the ratio 2:1. · Sandile is entitled to an annual salary of R450 000. Siyasanga is entitled to an annual salary of R730 000. · Interest is calculated at 11.5% per annual on the opening balances of the partners capital accounts. · Depreciation must be calculated on Vehicles at 20% per annum according to the diminishing balance method. · Advertising excludes an amount that is still payable of R10 000. · The terms of the mortgage provide for interest on the loan to be calculated at a rate of 10% per annum on the outstanding amount of the loan at the end of the financial year. On 1 July 2022, the partnership repaid an amount of R6 500 of the loan in advance. Insert spreadsheet. Question 20 What is the opening total equity balance as at 1 July 2022? A. 107 000 B. 301 000 C. 201 000 D. 307 000 Clear my choice Assume the partnership made a profit of R 1 150 000, what will be the share for Siyasanga? A. R656 667 B. R283 333 C. R766 667 D. R383 333 Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 22 Answer saved Marked out of 1.00 Question 23 Answer saved Marked out of 1.00 Question 24 Answer saved Marked out of 1.00 Calculate the depreciation on the vehicles for the year ended 30 June 2023 A. R10 000 B. R9 800 C. R5 500 D. R8 000 Clear my choice What is the adverting costs for the year ended 30 June 2023? A. R44 000 B. R50 000 C. R55 000 D. R65 000 Clear my choice Calculate the interest on Sandiles capital account for the year ended 30 June 2023. A. R22 000 B. R35 000 C. R23 000 D. R30 000 Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 25 Answer saved Marked out of 1.00 Question 26 Answer saved Marked out of 1.00 Question 27 Answer saved Marked out of 1.00 Calculate the interest on the Mortgage for the year ended 30 June 2023R3 200 A. R 4 000 B. R4 200 C. R3 200 D. R3 000 Clear my choice Which one of the following alternatives represents the correct amount that must be disclosed as cash and cash equivalents or bank overdraft in the statement of financial position of Ndzamela Traders for the year ended 30 June 2022? A. R62 300 (Bank overdraft) B. R73 000 C. R28 000 D. R100 100 Clear my choice Which one of the following should not be included in the cost of sales calculation for Zimi Traders. A. Carriage on sales B. Import duty on purchases C. Carriage on purchases D. Insurance on purchases Clear my choice Downloaded by: dtabdb | Distribution of this document is illegal Want to earn R13,625 per year? Downloaded by: itsbesttutors | Distribution of this document is illegal Want to earn R13,625 per year? S - The study-notes marketplace S - The study-notes marketplace 8/26/23, 10:35 AM Assessment 1 Question 28 Answer saved Marked out of 1.00 Question 29 Answer saved Marked out of 1.00 Question 30 Answer saved Marked out of 1.00 How is Net profit calculated? A. Income-Expenses B. A=OE+L C. Capital- Drawings D. Capital+Drawings Clear my choice Which of the following describes the Historical cost rule? A. fundamental qualitative characteristics of financial reporting as stipulated in IFRS. B. Enhancing qualitative characteristics of the disclosure requirements as stipulated in IFRS. C. Financial information that is important to the decisions of users must be shown separately. D. Enhancing qualitative characteristics of financial reporting as stipulated in the Conceptual Framework. Clear my choice Comparability is one of the qualitative characteristics of financial reporting. True False