QUESTION1 (8Marks)
AIN2601 MAY/JUN 2022
WRITE THE CORRECT ANSWER (A, B, C, OR D) IN YOUR ANSWER BOOK NEXT TO THE RELEVANT
QUESTION NUMBER. EACH CORRECT ANSWER COUNTS ONE (1) MARK.
1.1 What is the main concern about financial reporting?
A. reliability
B. matching
C. materiality
D. comparability
D
1.2 A deposit that has been paid by a customer for goods that have been sold on credit will affect
the accounts as follows?
A. Dr Bank Cr Sales; Dr Cost of sales Cr Inventory
B. Dr Trade receivables Cr Sales; Dr Cost of sales Cr Inventory
C. Dr Deposit Cr Sales; Dr Cost of sales Cr Inventory
D. Dr Deposit Cr Trade receivables; Dr Cost of sales Cr Inventory
D
1.3 One of the disadvantages of using Extensible Business Reporting Language is compatibility. The
compatibility disadvantage is when ...
A. not all TPSs can export to XBRL.
B. not all users or accountants are familiar with XBRL resulting in many errors.
C. XBRL data is available all the time creating great potential for security breaches.
D. information transferred to and from different financial information systems electronically
on a regular basis.
A
AIN2601 MAY/JUN 2022
WRITE THE CORRECT ANSWER (A, B, C, OR D) IN YOUR ANSWER BOOK NEXT TO THE RELEVANT
QUESTION NUMBER. EACH CORRECT ANSWER COUNTS ONE (1) MARK.
1.1 What is the main concern about financial reporting?
A. reliability
B. matching
C. materiality
D. comparability
D
1.2 A deposit that has been paid by a customer for goods that have been sold on credit will affect
the accounts as follows?
A. Dr Bank Cr Sales; Dr Cost of sales Cr Inventory
B. Dr Trade receivables Cr Sales; Dr Cost of sales Cr Inventory
C. Dr Deposit Cr Sales; Dr Cost of sales Cr Inventory
D. Dr Deposit Cr Trade receivables; Dr Cost of sales Cr Inventory
D
1.3 One of the disadvantages of using Extensible Business Reporting Language is compatibility. The
compatibility disadvantage is when ...
A. not all TPSs can export to XBRL.
B. not all users or accountants are familiar with XBRL resulting in many errors.
C. XBRL data is available all the time creating great potential for security breaches.
D. information transferred to and from different financial information systems electronically
on a regular basis.
A
