Information on the financial performance of an entity is obtained from an entity's?

Multiple Choice

• Statement of Comprehensive Income

• Statement of Financial Position

• Statement of Cash Flows

• Statement of Changes in Equity

• If a company buys a machine for 12,000 with an estimated useful life of 4 years and a residual value of 4,000, what is the annual depreciation charge if calculated on a straight line basis?

  Multiple Choice

• 2,000

• 4,000

• 1,000

• 3,000

• B. Builder had an allowance for irrecoverable debts at the start of the year of 5,000. At year end he had receivables of 100,000 and decided to make a 2% allowance for irrecoverable debts.

  What entries should be made to the accounts?

  Multiple Choice

• Dr. Allowance for irrecoverable debts 3,000

  Cr. Statement of profit or loss 3,000

• Dr. Statement of profit or loss 3,000

  Cr. Allowance for irrecoverable debts 3,000

• Dr. Allowance for irrecoverable debts 2,000

  Cr. Statement of profit or loss 2,000

• Dr. Statement of profit or loss 2,000

  Cr. Allowance for irrecoverable debts 2,000