K_Which of the following transactions would result in an increase in capital employed?

ASelling stock at profit

BWriting off a bad debt

CPaying a creditor in cash

DIncreasing the bank overdraft to purchase a fixed asset

(2 marks)

5.2 Rent paid on 1 October 2002 for the year to September 2003 was 600 and rent paid on 1 October 2003 for the year to 30 September 2004 was 800. Rent payable, as shown in the profit and loss account for the year ended 31 December 2003, would be

A600

B800

C650

D750

(2 marks)

5.3A decrease in the provision for doubtful debts would result in

Aan increase in liabilities

Ba decrease in working capital

Ca decrease in net profit

Dan increase in net profit

(2 marks)

5.4The sales account is

Acredited with the total of sales made, including VAT

Bcredited with the total of sales made, excluding VAT

Cdebited with the total of sales made, including VAT

Ddebited with the total of sales made, excluding VAT

(2 marks)

5.5An error of commission is one, where

Aa transaction has not been recorded

Bone side of a transaction has been recorded in the wrong account, and that account is of a different class from the correct account

Cone side of a transaction has been recorded in the wrong account, and that account is of the same class from the correct account

Da transaction has been recorded using the wrong amount