Question 1 of 27

1.0 Points

State whether the following statement is true or false. The profit or loss account are closed off to the statement of profit or loss and other comprehensive income for a financial year.

Question 2 of 27

1.0 Points

Indicate by choosing the correct option whether the following statement is true or false: A summary of all cash transactions for a non-profit entity is represented in the income and expenditure statement.

Question 3 of 27

1.0 Points

State whether the following statement is true or false. A receipts and payments statement for non-profit entities is the same as a bank account for a sole trader.

Question 4 of 27

1.0 Points

Indicate by choosing the correct option whether the following statement is true or false: The gross profit calculated in the trading statement of a non-profit entity is transferred to receipts and payments statement

Question 5 of 27

1.0 Points

One of the steps to calculate sales if no distinction can be made between cash and credit sales, if you want to convert a single-entry system into a double entry system where minimal records are kept, is to calculate the amounts with the aid of the trade receivables control account.

Question 6 of 27

1.0 Points

State whether the following statement is true or false. Stationery on hand at the end of the year will be shown as an expense in the statement of profit or loss and other comprehensive income

Question 7 of 27

1.0 Points

Indicate by choosing the correct option whether the following statement is true or false: Short and long- term year-end adjustments are recorded in the general journal of an entity

Question 8 of 27

1.0 Points

State whether the following statement is true or false. Drawings will be closed off to the capital account at the end of a financial year

Question 9 of 27

1.0 Points

State whether the following statement is true or false. Under a periodic inventory system, the cost of sales is not determined at the time of the recording of the sale.

Question 10 of 27

1.0 Points

Indicate by choosing the correct option whether the following statement is true or false: A closing transfer entry will be done at the end of the financial year in the general journal to transfer sales returns to the sales account

Question 11 of 27

1.0 Points

Indicate by choosing the correct option whether the following statement is true or false: The trade and other payables amount in the statement of financial position will include the amount of the year-end adjustment for accrued expenses.

Question 12 of 27

1.0 Points

Indicate by choosing the correct option whether the following statement is true or false: 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.

Question 13 of 27

1.0 Points

Indicate by choosing the correct option whether the following statement is true or false: Drawings and donation of trading inventory is recorded at cost price in the general journal

Question 14 of 27

1.0 Points

State whether the following statement is true or false. The account of a debtor that is insolvent will be credited with the amount owed and credit losses will be debited

Question 15 of 27

1.0 Points

Indicate by choosing the correct option whether the following statement is true or false: 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-adjustment trial balance.