A credit balance on a ledger account indicates.........a$.$a liability or an expenseb.an asset or expensec.a liability or incomed.an amount owing to the business Clear my choice Question $8$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text FoxCo purchased a Printing Machine for their printing business. Which one of the following expenses should not be included in the cost of the machine:a$.$Maintenance and repair costs b$.$Delivery costsc$.$Installation costsd$.$Printing machine costClear my choice Previous activity The following is presented for Mhlalkwana Dealers at $31$ December $2023$: RevenueCost of sales Operating expenses CapitalR $265000$ R $115000$ R $62000$ R $230000$On October $10,2023,$ the owner, Thubana, withdrew an amount of R$9,300$ to purchase a cow for the funeral of his grandmother in Siyabuswa. He further withdrew R$62500$ on $1$ December $2023$ to cover his familys vacation for the festive season. A stocktake of the jackets was conducted on December $31,2023.$ During this assessment, it was discovered that $5$ jackets, valued at R$7,500,$ were damaged due to a chemical spill in the storage room. The five workers expressed interest in acquiring the damaged jackets at a price of R$600$ each. The owner consented to this arrangement with the stipulation that the amount would be deducted from their salaries at the end of January $2024.$Which one of the following alternatives represents the correct capital balance in the statement of financial position of Mhlalkwana Dealers as at $31$ December $2023?$a$.$R $241700$ b$.$R $313500$ c$.$R $251000$ d$.$R $239300$ e$.$R $238700$ Clear my choice Previous activityAdditional ResourcesJump to$...$ Insurance expenses paid in advance by an entity at the end of its financial year is recorded in the financial statements as:a$.$an expense in the statement of profit or loss and other comprehensive income. b$.$ an expense in the statement of changes in equityc.a prepayment in the non$-$current assets section of the statement of financial position. d$.$a prepayment in the current assets section of the statement of financial position. Clear my choice Question $11$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text Which one of the following alternatives is incorrect? a$.$The purpose of the Conceptual Framework is to override any particular disclosure or measurement requirement in any IFRSb.The purpose of the Conceptual Framework is to assist in developing future standards. c$.$The purpose of the Conceptual Framework is to assist in harmonising legislation and reducing the number of alternative accounting treatments.d$.$The purpose of the Conceptual Framework is to assist users in interpreting the information in interpreting the financial statements when compiled according to IFRS. Clear my choice Question $12$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text Telephone expense in arrears $($unpaid$)$ at the end of an entitys financial year will be recorded in the general journal of the entity by:a$.$Debiting telephone expense and crediting bankb.Debiting accrued expense and crediting bankc.Debiting telephone expense and crediting accrued expense d$.$Debiting bank and crediting telephone expense Clear my choice Question $13$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text Relevance and faithful representation are the...a$.$enhancing qualitative characteristics of the disclosure requirements as stipulated in IFRS.b$.$fundamental qualitative characteristics of financial reporting as stipulated in IFRS. c$.$fundamental qualitative characteristics of financial reporting as stipulated in the Conceptual Framework.d$.$enhancing qualitative characteristics of financial reporting as stipulated in the Conceptual Framework. Clear my choice Question $14$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text Which one of the following is an example of a financial asset:a$.$Inventoryb.Loans receivablec.Trade payabled.Property, Plant and Equipment Clear my choice Question $15$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text Which one of the following expenses should be included in the cost of inventories sold during the year? a$.$Carriage on salesb.Carriage on purchasesc.Depreciation on delivery vehicle d$.$Insurance on deliveriesClear my choice Previous activityAdditional ResourcesJump to$...$ Mhlalkwana Dealers is in the business of selling leather jackets, at a price of R$1500$ each, around the townships of KwaNdebele. The owner, Masango, was approached by a local clothing store called Thubana Clothing for a bulk sale. Mhlalkwana Dealers sold $18$ jackets to Thubana Clothing on credit and this transaction was concluded on $31$ October $2023.$This transaction was concluded on the following terms:A trade discount of $12\%$ on the bulk sale.An early payment discount of $5\%$ on the amount paid within $30$ days.Which one of the following amounts represents the correct amount received by Mhlalkwana Dealers if Thubana Clothing only paid $75\%$ of the amount owing on $30$ November $2023?$ a$.$R $16929$b$.$R $17820$c$.$R $23760$d$.$R $22572$Clear my choice Previous activity Time left $1$:$52$:$25$ Question $17$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text Which of the following statements is correct:a$.$The value of a reporting entity lies in the net assets $($assets minus liabilities$)$ under its control.b$.$Equity is the residual interest in the assets of the entity after deducting all the expenses. c$.$The accounting equation is: Liabilities $+$ Assets $=$ equityd. A liability is a future obligation of a reporting entity to transfer an economic resource as a result of a past event.Clear my choice Question $18$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text The definition of an asset is:a$.$A future economic resource controlled by a reporting entity as a result of a future event. b$.$A present economic resource controlled by a reporting entity as a result of a past event. c$.$A future economic resource controlled by a reporting entity as a result of a past event. d$.$A present economic resource controlled by a reporting entity as a result of a future event.Clear my choice Previous activityAdditional Resources Jump to$...$ For Keke Baking, owned by Lingo, the financial year ends on December $31.$ On January $1,2023,$ an examination of the municipal statement indicated a surplus payment of R$2,500.$ During the year, from January $1,2023,$ to December $31,2023,$ Keke Baking received three $4-$monthly water bills, totalling R$4800,$ R$4120$ and R$4890,$ respectively. On $28$ December $2023,$ the municipality sent an additional bill for the recovery of undercharged water use for October $2023.$ By December $31,2023,$ the municipal account showed an outstanding balance of R$2810$ for water consumed and a total amount paid by Keke Baking of R$9210$ for the year.Which of the following options correctly identifies the amount that should be recorded as the water expense in Keke Bakings statement of profit or loss and other comprehensive income for the year ending December $31,2023?$a$.$R $13810$b$.$R $14520$c$.$R $13100$d$.$R $12020$Clear my choice Previous activity Question text Which of the following measurement bases will often be encountered in a set of financial statements:a$.$All of the above b$.$Fair valuec.Present value d$.$ Historical costClear my choice Question $21$Not yet answered Marked out of $2\mathrm{.}00$Flag question Question text The statement of financial position consists of three elements namely:a$.$liabilities, equity and expenses b$.$assets, liabilities and equity c$.$assets, income and expenses d$.$liabilities, income and expensesGiven information to questions $15$:Sharpville $4$U Furniture, a partnership established on February $1,2023,$ by Carlton and Carlie, specialises in the manufacturing of household and office furniture and supplies to furniture stores and households around Sharpville.The following information pertains to the business activities as of February $29,2024.$EXTRACT OF BALANCES AS AT $28$ FEBRUARY $2024$SalesPurchasesSettlement discount receivedDelivery cost on salesDelivery cost on purchasesBank chargesDepreciationOffice equipment rental expenses Water and electricitySalaries and wagesStationery consumedInterest on loanEquipment at costAccumulated depreciation: Equipment Land and buildings at costInventory $(1$ March $2023)$Trade receivables controlBank $($Dr$)$Capital: CarltonCapital: CarlieDrawings: CarltonDrawings: CarlieR$730,590474,6709,6201,75012,8004,47019,38019,32020,15043,9801,63017,000178,25018,290517,5006,90094,63081,570212,400120,00042,48048,750$Long$-$term loan $($Myeni Bank$)450,000$ Trade payables control $34,4801\mathrm{.}2\mathrm{.}1$Additional information:Partnership agreement:Each partner has a monthly salary entitlement of R$14,100.$ An advance payment$2\mathrm{.}1\mathrm{.}1$to one of the partners has been made to one of the partners as salary for March and April $2024\mathrm{.}2\mathrm{.}1\mathrm{.}2$ An annual interest rate of $10\%$ is applied to the capital account balances$\mathrm{.}2\mathrm{.}1\mathrm{.}3$ Carlton and Carlie agreed to share profits and losses at a ratio of $3$:$1\mathrm{.}2\mathrm{.}2$ Year$-$end adjustments: $2\mathrm{.}2\mathrm{.}1$ The office equipment rental expenses include R$3150$ for a printing machine which Carlies wife uses at home for personal reasons. Additionally, on $3$ March $2024,$ a bill for February $2024$ totalling R$2800$ was received and has yet to be accounted for$\mathrm{.}2\mathrm{.}2\mathrm{.}2$ The company's land and buildings include the factory and adjacent office in Sharpville, which also acts as collateral for a long$-$term loan from Myeni Bank. This loan, bearing a $10\%$ annual interest rate, was secured on May $1,2023,$ with interest payments due semi$-$annually at the end of August and February$\mathrm{.}2\mathrm{.}2\mathrm{.}3$ During the year, Carlton was allotted R$4,800$ for a travel allowance to attend a black industrialist summit in Durban. From this allowance, R$1200$ was spent on Uber for travel to $($and from$)$ the airport and summit, and R$3,000$ was spent on flight tickets and accommodation$\mathrm{.}2\mathrm{.}2\mathrm{.}4$ The inventory's value was calculated to be R$18,100$ as of February $29,2024\mathrm{.}2\mathrm{.}2\mathrm{.}5$ As an initial capital contribution, one partner introduced inventory valued atR$6,000,$ which was the opening inventory on March $1,2023.$Which one of the following alternatives represents the correct amount that must be disclosed as cost of sales in the statement of profit or loss and other comprehensive income of Sharpville $4$U Furniture for the year ended $29$ February $2024?$a$.$R $453,800$ b$.$R $466,650$ c$.$ R $447,410$ d$.$R $453,850$ e$.$R $434,610$Clear my choice Question $23$Not yet answered Marked out of $2\mathrm{.}00$ Flag question Question text Which one of the following alternatives represents the correct amount of half$-$yearly interest payment by Sharpville $4$U Furniture on $31$ August $2023?$a$.$R $15,000$ b$.$R $41,250$ c$.$R $18,750$ d$.$ R $37,500$e$.$R $45,000$Clear my choice Question $24$Not yet answered Marked out of $3\mathrm{.}00$Flag question Question text Which one of the following alternatives represents the correct amount that must be disclosed as office equipment rental expense in the statement of profit or loss and other comprehensive income of Sharpville $4$U Furniture for the year ended $29$ February $2024?$a$.$R $22,120$b$.$R $19,320$c$.$R $16,170$d$.$R $16,100$e$.$R $18,970$Clear my choice Question $25$Not yet answered Marked out of $5\mathrm{.}00$ Flag question Question text Which one of the following alternatives represents the correct amount that must be disclosed as total drawings in the statement of changes in equity of Sharpville $4$U Furniture for the year ended $29$ February $2024?$ a$.$R $94,980$b$.$R $120,030$c$.$R $123,180$d$.$R $122,580$e$.$R $91,230$Clear my choice Question $26$Not yet answered Marked out of $3\mathrm{.}00$ Flag question Question text Which one of the following alternatives represents the correct amount that must be disclosed as finance costs in the statement of profit or loss and other comprehensive income of Sharpville $4$U Furniture for the year ended $29$ February $2024?$a$.$R $45,000$b$.$R $37,500$c$.$R $15,000$d$.$R $18,750$e$.$R $41,25$