FAC1503 Assignment 01 Q & A

ASSIGNMENT 01 QUESTIONS AND ANWERS:




Q1. An example of a built-in control measure is when all payments must be made by
EFTs.


• FALSE
Refer to section 1.4.2 of learning unit 1


Q2. In terms of IFRS, notes to the financial statements, which reflect the accounting
policy of the entity and expand on the line items in the statement of financial position
and the statement of profit or loss and other comprehensive income, should form
part of the financial statements of an entity.


• TRUE
Refer to section 1.6 of learning unit 1


Q3. A purchase order is a buyer-generated source document used to place an order
with a vendor or supplier. When accepted by the seller, it becomes a legally binding
contract between the buyer and the seller. Purchase orders are used when a buyer
wants to purchase supplies or inventory on account.


• TRUE
Refer to learning unit 2.5.3


Q4. Sales can be classified as income in the financial statements.


• TRUE
Refer to section 1.6.2 of learning unit 1


Q5. When SA Stationers deliver the stationery ordered by SA Attorneys, a purchase
order will be the source document accompanying the delivery.


• FALSE
Refer to learning unit 2.5.3