Gulf College -Faculty of Business and Management Studies- In academic Affiliation with CARDIFF SCHOOL OF MANAGEMENT Question 1 a) Given below are a number of cash or credit transactions. For each transaction, indicate provide the reason, whether it is a cash transaction or a credit transaction. L Receipt of goods worth OMR 125 from a supplier together with an invoice for that amount i Payment of OMR 275 by Cheque for a purchase. ili. Receipt of a deposit of OMR 15 for goods. v. Sending of an invoice for OMR 135 to the payer of the deposit for the remaining (5 marks) b) A business has capital of OMR10,000 and liabilities of OMR4,000. Which of the following value of the goods. Sale of goods for OMR 15, payment received by credit card. v. asset and liability figures could appear in this business' statement of financial position? Which equation would be applicable and why? . Assets OMR6,000 ii. Assets OMR6,000 Liabilities OMR16,000 Liabilities OMR4,000 lli. Assets OMR10,000 Liabilities OMR10,000 v. Assets OMR14,000 Liabilities OMR4,000 (5 marks) Question 2 a) Describe the accounting concept that would be relevant when deciding on how to account for a transaction, which involves an owner of a business taking inventory for his own use. Also, explain the concepts with an example: i. Cost concept i. Money measurement concept i. Dual aspect concept iv. Time interval concept (10 marks) b) Some of the accounting concepts are confusing. So, sometimes tensions arise between the different accounting concepts. In this regard, explain the differences between; i. Accruals and prudence concept i. Consistency and prudence concept (10 marks)