FAC1502 NOTES PREPARATION 2020/2021 QUESTIONS WITH ANSWER

FAC1502 NOTES PREPARATION
2020/2021 QUESTIONS WITH
ANSWERS

, FAC1502 NOTES
PREPARATION 2020/2021
FAC1502 NOTES 2020/2021
QUESTIONS WITH ANSWERS
Part 1 of 4 - 4.0/ 8.0 Points

Question 1 of 20
0.0/ 1.0 Points
Make-it-Grow Salon bought hair trimming equipment from Wall Trimmers for R3 500
What is the net effect of this transaction on the elements of the basic accounting equa


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A.
Net effect on assets is R3 500 increase.




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B.
Net effect on assets is R0.

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C.
Net effect on equity is R3 500 decrease.

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D.
Net effect on assets is R7 500 increase.



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E.
Net effect on liabilities is R3500 increase.

, Answer Key:B
Question 2 of 20
1.0/ 1.0 Points
Which of the following is not an external user of financial information?


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A.
Government

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B.
Creditors

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C.
Public

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D.
Employees

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E.
Investors




Answer Key:D
Question 3 of 20
1.0/ 1.0 Points
The objective of a business entity is to…




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, 
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

A.
reduce expenditure.

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B.
preserve assets.

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C.
settle liabilities.

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D.
maximise income.

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E.
minimise losses.




Answer Key:D
Question 4 of 20
0.0/ 1.0 Points
Dubai Mountains made a direct payment to Sbali Limited to settle an amount ow
R12 000 for business supplies. What is the effect of this transaction on the general l
accounts of Dubai Mountains?


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

A.
The bank account will decrease with R12 000 and the trade payables accou
will

decrease with R12 000.