7)State whether the following statement is true or false. Membership fees received inadvanceat the end of a financial period will be entered on the credit side of the membership fees account.

A. True

B. False

8)State whether the following statement is true or false. An income and expenditure statement for nonprofit entities is the same as a statement of profit or loss and other comprehensive income for a sole trader.

A. True

B. False

9)Indicate by choosing the correct option whether the following statement is true or false: The one advantage of using a single-entry system is that financial statement results can be compared on a yearly basis.

State whether the following statement is true or false. The cost price of machinery is shown under non-current assets in the statement of financial position as part of property, plant and equipment.

A. True

B. False

10)State whether the following statement is true or false. The cost price of machinery is shown under non-current assets in the statement of financial position as part of property, plant and equipment

A. True

B. False

11)State whether the following statement is true or false. Settlement discount received will be closed off to the sales account at the end of a financial year.

A. True

B. False

12)State whether the following statement is true or false. Single entry systems, that is incomplete records, are sometimes used by small businesses, because they know very little about basic bookkeeping principles.

A. True

B. False

13)State whether the following statement is true or false. Prepaid expenses will be disclosed as a current liability in the statement of financial position at the end of a financial period.

A. True

B. False

14)Indicate by choosing the correct option whether the following statement is true or false: Gizmo Soccer Club will be classified as a non-profit entity.

A. True

B. False

15)State whether the following statement is true or false. When the perpetual inventory system is used, carriage on purchases, is debited to the asset account, inventory, since the cost of sales must be brought into account with each sales transaction and carriage on purchases constitutes an integral part of the cost per unit.

A. True

B. False