10. Complete the following statement: Balance Sheet ..... a) is constructed based on accounting equation and contains financial data about assets, liabilities and capital of the business entity. b) is also known as Statement of Financial Position c) measures and reports the profit or loss that the business entity has generated during a defined period. d) 'a' and 'b' 11. A trial balance did not balance, and a suspense account was created. An investigation of transactions revealed that a bank payment of 200 was correctly credited to the business bank account but no other entry was made. The amount paid was for a credit supplier. The journal required to correct this error is: a) Debit Trade Payables alc (200): Credit Suspense alc (200) b) Debit Trade Receivables a/c (200): Credit Trade Payables alc (200) c) Debit Suspense a/c (200): Credit Trade Receivables alc (E200) d) Debit Suspense alc (200): Credit Trade Payables alc (200) 12. Which of the following shows accounts that are classified as operating expenses"? a) Prepayments, payables, bank, building b) Inventory, prepayment, Rent, land c) Accruals, payables, long-term loan, bank overdraft d) Rent, Wages, Bad Debt, Interest 13. A fixed asset has an original cost of 100,000 and is to be depreciated using the straight-line method and an annual rate of 12.5%. What is the expected useful economic life of the fixed asset? a) 80 months b) 20 months c) 8 years d) 10 years 14. A business had recorded sales of 70,000 and purchases of 50,000 for an accounting period. Closing payables (creditors) for the same period were established at 6,800. Calculate average creditors repayment period. a) 35.45 days b) 49.64 days c) 50.21 days d) 52.86 days 15. Which of the following shows the present value of 8,000 receivable at the end of a 5-year time period at an interest rate of 8%? a) 5,448 b) 5,960 c) 31,944 d) 40,000