Indicate True or False

1. Financial statements prepared from using the single- entry system are considered unreliable.

2. Short and long- term year-end adjustments are recorded in the general journal of an entity

3. Accrued income will be added to the trade receivables control account balance to disclose the in the trade and other receivables amount in the statement of financial position at the end of the financial year.

4. The balance of equity at the beginning of the financial year in the statement of changes in equity is disclosed in the statement of financial position.

5. If entrance fees need to be capitalised, it means the full amount for entrance fees must be disclosed as income in the income and expenditure statement.

6. Carriage on purchases will increase the cost price of trading inventory, thereby increasing gross profit.

7. 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.

8. At the end of the financial year, after the year-end adjustments are recorded in the general ledger accounts, the accountant will then prepare a post-closing trial balance.

9. Due to a non- profit entity not applying the double entry principle, this will result in the non-profit entity having incomplete records as the accounting transactions were not recorded properly.

10. The one advantage of using a single-entry system is that financial statement results can be compared on a yearly basis.

11. Accrued income which relates to the current financial period, but which has not yet been received at the end of the current financial period will be added to the amount already received for the year to determine the amount that needs to be posted to the profit or loss account.

12. If the VAT output amount in the VAT control account is bigger than the VAT input account in the VAT control account, the amount of the difference will be disclosed as a current asset in the statement of financial position.

13. If the VAT output amount in the VAT control account is bigger than the VAT input account in the VAT control account, the amount of the difference will be disclosed as a current asset in the statement of financial position.

14. The apportionment of the depreciation is credited in the asset contra account, namely accumulated depreciation.

15. Donation of trading inventory is recorded at cost price in cash payments journal.