4 Assignment 4
RETURN TO ASSESSMENT LIST
Part 1 of 10 - Part 5 4.0/ 9.0 Points
Question 1 of 28
0.0/ 1.0 Points
Verifiability refers to the fact that all the information that a user needs in order to be able to
understand the economic events and transactions, should be included in the financial
statements.
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
The detailed accounting records kept by a law practitioner for every transaction is known as
the general ledger.
True
False
Answer Key:False
Feedback:Refer to learning unit 2.5
Question 3 of 28
0.0/ 1.0 Points
Each transaction is entered in one account on opposite sides, and it is, therefore, possible to
check and control the arithmetical and accounting accuracy of the work.
True
False
Answer Key:False
Feedback:Refer to learning unit 2.1
Question 4 of 28
1.0/ 1.0 Points
,Going concern 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
When a business obtains a loan from a bank and the bank deposits the money into the
business bank account, the transaction will result in a decrease (debit entry) in an asset
account and a decrease (credit entry) in a liability account.
True
False
Answer Key:False
Feedback:Refer learning unit 4.2
Question 6 of 28
0.0/ 1.0 Points
After selling inventory the business can calculate its profit by deducting the selling price from
the cost price.
True
False
Answer Key:False
Feedback:Refer to learning unit 3.2.1
Question 7 of 28
0.0/ 1.0 Points
The financial statements consist only of the following three components:
1. Statement of profit or loss and other comprehensive income
2. Statement of changes in equity
3. Statement of financial position
4.
True
False
, Answer Key:False
Feedback:Refer to learning unit 5.12
Question 8 of 28
0.0/ 1.0 Points
Equity can be calculated as follows for a sole proprietor: Issued share capital, plus
accumulated reserves, plus retained earnings (accumulated profits minus accumulated losses).
True
False
Answer Key:False
Feedback:Refer to section 1.6.1 of learning unit 1
Question 9 of 28
1.0/ 1.0 Points
The bank captured a deposit made by the business as R6 400 instead of R3 400. While
preparing the bank reconciliation statement the business must make an entry in the cash
payments journal.
True
False
Answer Key:False
Feedback:Refer to learning unit 3.5.1
Part 2 of 10 - Part 3 2.0/ 4.0 Points
Question 10 of 28
2.0/ 2.0 Points
On 25 March 2020, SA Attorneys (registered as a VAT vendor and VAT is charged at 15%)
paid the business telephone account to the amount of R2 500 (VAT inclusive) via an EFT.
The account(s) debited and the account(s) credited in the general ledger will be:
•
A.
Account(s) to be debited Account(s) to be credited
Telephone expense and VAT
Business bank
input
•
B.
Account(s) to be debited Account(s) to be credited
RETURN TO ASSESSMENT LIST
Part 1 of 10 - Part 5 4.0/ 9.0 Points
Question 1 of 28
0.0/ 1.0 Points
Verifiability refers to the fact that all the information that a user needs in order to be able to
understand the economic events and transactions, should be included in the financial
statements.
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
The detailed accounting records kept by a law practitioner for every transaction is known as
the general ledger.
True
False
Answer Key:False
Feedback:Refer to learning unit 2.5
Question 3 of 28
0.0/ 1.0 Points
Each transaction is entered in one account on opposite sides, and it is, therefore, possible to
check and control the arithmetical and accounting accuracy of the work.
True
False
Answer Key:False
Feedback:Refer to learning unit 2.1
Question 4 of 28
1.0/ 1.0 Points
,Going concern 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
When a business obtains a loan from a bank and the bank deposits the money into the
business bank account, the transaction will result in a decrease (debit entry) in an asset
account and a decrease (credit entry) in a liability account.
True
False
Answer Key:False
Feedback:Refer learning unit 4.2
Question 6 of 28
0.0/ 1.0 Points
After selling inventory the business can calculate its profit by deducting the selling price from
the cost price.
True
False
Answer Key:False
Feedback:Refer to learning unit 3.2.1
Question 7 of 28
0.0/ 1.0 Points
The financial statements consist only of the following three components:
1. Statement of profit or loss and other comprehensive income
2. Statement of changes in equity
3. Statement of financial position
4.
True
False
, Answer Key:False
Feedback:Refer to learning unit 5.12
Question 8 of 28
0.0/ 1.0 Points
Equity can be calculated as follows for a sole proprietor: Issued share capital, plus
accumulated reserves, plus retained earnings (accumulated profits minus accumulated losses).
True
False
Answer Key:False
Feedback:Refer to section 1.6.1 of learning unit 1
Question 9 of 28
1.0/ 1.0 Points
The bank captured a deposit made by the business as R6 400 instead of R3 400. While
preparing the bank reconciliation statement the business must make an entry in the cash
payments journal.
True
False
Answer Key:False
Feedback:Refer to learning unit 3.5.1
Part 2 of 10 - Part 3 2.0/ 4.0 Points
Question 10 of 28
2.0/ 2.0 Points
On 25 March 2020, SA Attorneys (registered as a VAT vendor and VAT is charged at 15%)
paid the business telephone account to the amount of R2 500 (VAT inclusive) via an EFT.
The account(s) debited and the account(s) credited in the general ledger will be:
•
A.
Account(s) to be debited Account(s) to be credited
Telephone expense and VAT
Business bank
input
•
B.
Account(s) to be debited Account(s) to be credited
