5. A cash deposit made by the business will appear on the bank statement as a balance. a) Debit b) Credit c) Expense d) Liability Page 20 of 24 6. Error of omission arises when a) Any transaction is incorrectly recorded, either wholly or partially b) Any transaction is left out wholly c) Any transaction is recorded in a fundamentally incorrect manner d) None of these 7. The Journal entry to record the sale or disposition of a depreciable plant asset always includes: a) Recognition of a gain b) A debit to the accumulated depreciation account for the related accumulated depreciation c) Recognition of a loss d) A debit to the asset account for the book value of the assets 8. When a non-current asset is sold for a profit, the amount is transferred to the Statement of Comprehensive Income by a debit in disposal of non-current asset account. a) True b) False 9. A cheque returned to you marked R/D means that: a) The bank cannot verify your identity b) There are no sufficient funds in your account c) The cheque has been forged d) The cheque cannot be cashed because it is illegal 10. An overdraft in the bank statement is included in the balance sheet as a current asset a) True b) False