FAC1502 EXAM PREPARATION 2021/2022 (Questions And Answers)

FAC1502 EXAM PREPARATION 2021/2022 (Questions And Answers) Make-it-Grow Salon bought hair trimming equipment from Wall Trimmers for R3 500 cash. What is the net effect of this transaction on the elements of the basic accounting equation? • A. Net effect on assets is R3 500 increase. • B. Net effect on assets is R0. • C. Net effect on equity is R3 500 decrease. • D. Net effect on assets is R7 500 increase. • 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? • A. Government • B. Creditors • C. Public • D. Employees • E. Investors Answer Key:D Question 3 of 20 1.0/ 1.0 Points The objective of a business entity is to… • A. reduce expenditure. • B. preserve assets. • C. settle liabilities. • D. maximise income. • 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 owing of R12 000 for business supplies. What is the effect of this transaction on the general ledger accounts of Dubai Mountains? • A. The bank account will decrease with R12 000 and the trade payables account will decrease with R12 000. • B. The bank account will increase with R12 000 and the trade payables account will increase with R12 000. • C. The inventory account will increase with R12 000 and the trade payables account will increase with R12 000. • D. The inventory account will decrease with R12 000 and the trade payables account will will increase with R12 000 • E. The bank account will decrease with R12 000 and the trade receivables account will increase with R12 000 Answer Key:A Question 5 of 20 0.0/ 1.0 Points Which one of the following transactions is an example of income to an entity? • A. Cash withdrawn by owner from entity. • B. Interest received for a positive bank balance. • C. Cash received from debtors. • D. Cash deposited by owner into the entity’s bank account. • E. Rent paid for premises leased. Answer Key:B Question 6 of 20 1.0/ 1.0 Points Bank will be disclosed as … in the statement of financial position. • A. a current liability. • B. a non-current liability