2 Marks Q.No : 9 Which of the following would be a suitable accounting policy note for disclosure in the financial statements relat buildings? OA) Land and buildings are accounted for at cost and are written off over their useful life of 50 years on a straigh B) Land and buildings are accounted for at cost and are not depreciated as the directors believe that the market v buildings will increase over time C) Land and buildings are accounted for at cost, and the buildings are written off over their useful life of 50 years basis OD) The entity uses the same accounting policy for land and buildings as it does for intangible assets 2 Marks Q.No: 2 Revenue reserves would decrease if a company does which of the following? OA) Sets aside profits to pay future dividends B) Transfers amounts into 'general reserves OC) Issues shares at a premium OD) Pays dividends Q.No: 3 A draft statement of financial position has been prepared for Lollipop, a sole trader. It is repayment by Lollipop 14 months after the reporting date has been included in trade pay necessary adjustment? OA) No effect on net current assets B) Increase net current assets OC) Reduce net current assets OD) Increase current assets but reduce net current assets 2 Marks Q.No: 4 Arthur had net assets of $19,000 at 30 April 20X7. During the year to 30 April 20X7, he introduced $9,800 additional capital into the business and his profit for the year was $8,000. During the year ended 30 April 20X7 he withdrew $4,200. What was the balance on Arthur's capital account at 1 May 20X6? OA) $5,400 OB) $13,000 OC) $16,600 OD) $32,600 Ca