2. What is meant by internal benchmarking in ratio analysis?

Select one:

a. Comparing the results of the company against rival companies.

b. Comparing the companys performance against industrial performance.

c. Measurement of actual performance of the rival companies against target.

d. A standard measure to compare the actual performance of the company against target.

3.Which item is NOT permitted to be disclosed as separate line items on the face of the balance sheet?

Select one:

a. Minority interest

b. Deferred tax liability

c. Biological asset

d. Share of profit of associates

4. Which one of the following journal entries is correct when payment for share issue expenses are made?

Select one:

a. Debit: Bank; Credit: Trade payables

b. Debit: Bank; Credit: Share- issue expense

c. Debit: Share issue expense; Credit: Bank

d. Debit: Trade payables; Credit: Bank

5. In terms of the Act 71 of Companies Act 2008, which of the following statements is incorrect?

Select one:

a. Preference shares are always cumulative, even if the name does not confirm the position

b. Normally Preference shares have no votes at meetings of shareholders

c. Preference shares have priority right to receive dividend

d. In a company liquidation Preference shares are entitled to priority return of capital