1. A business has the following balances: Bank R1 100 (favourable), Trade creditors of R2 500, Loans of R8 000 and Land of R16 000. What is the capital balance of the business?

2. Which one of the following accounts will not be included in the trade and other debtors note?

A. Debtors control account

B. Allowance for credit losses

C. Income received in advance

D. Prepaid expenses

3. Which one of the following accounts will not be included in the Property, plant and equipment note?

A. Accumulated depreciation: Motor vehicles

B. Land and buildings

C. Depreciation

D. Inventory

4. Which accounting principle is applied when two similar transactions are treated in the same manner?

A. Accruals

B. Double-entry

C. Materiality

D. Consistency

5. What is the purpose of calculating depreciation?

A. To reflect the fair value of the asset in the statement of financial position

B. To ensure that funds are available for the eventual replacement of non-current assets

C. To write off the cost of the asset annually over the expected useful life of the asset

D. To reflect the falling realisable value of an asset

6. Which of the following will not fall under the definition of an asset?

A. Liabilities are debts of a business

B. are a debt of a business

C. The accounting equation shows how much of the businesss assets belong to the owner and how much belong to the people outside the business

D. All the above