Financial Accounting 1 5. A depreciable asset is an asset that: (a) is expected to be used during one financial period (b) Has an unimited useful life (the period over which a depreciable assel is expected to be used by a business) (c) is held by the business for its own use, that is not for resale. (d) None of the above 6. The most ganerally used methods of depreciation are the following: (a) The straight-line method (b) The reducing balance method (c) Both A and B (d) None of the above 7. We usually regard the following costs as part of the prime cost: (a) Raw materiais of manufacture (b) Supervisory and administrative wages and salaries applicable to the manufacturing operations (c) Repairs and renewals of machinery, and the leasing or depreciation of machinary and plant used (d) Rent, rates, insurance, light, heat, repairs, cleaning, and so on, of the factory. 8. Which of the following is not a type of business entity found in South Africa? (a) Sole traders (b) Partnerships (c) Balance Shoet (d) Companies 9. The main characteristics of an entily that has a legal parsonally are the following: (a) Legally, the entity has the same capacity and powers as a natural person (b) The owner is responsible for the debis of the business. (c) The profits of the business accrue to the owner. (d) The owner is taxed on the profits of the business in his or her personal capacity 10. The following orror will be revealed by the trial balance: (s) Errors of omission (both debil and credil omilted) (b) Omission of deblt or credit posting (c) Posting to the wrong account (d) Errors of principle, such as posting to assot account instead of expense account [101=10]