Question 1 pts Which of the following statements is correct? Group of answer choices The payment of a cash dividend reduces profit for the period. Providing services to a customer on credit does not impact profit for the period. The purchase of manufacturing equipment is reported within the statement of cash flows as a financing activity. Instalment paid on a loan liability is recorded as an expense in the income statement. The major difference between the quick and current ratios is inventory. Flag question:

Question 2 Question 21 pts Gourmet Shop purchased three cash registers on 1 April 2022 for R12 600. If each of these cash registers have an estimated useful life of three years and residual value of R600, what is the book value (i.e., carrying amount) of the cash registers on 31 March 2023 using the double-declining method of depreciation? Group of answer choices R13 800 R4 200 R8 400 R8 050 R12 600 Flag question:

Question 3 Question 31 pts Gourmet Shop purchased three cash registers on 1 April 2022 for R12 600. If each of these cash registers have an estimated useful life of three years and residual value of R600, what is the book value (i.e., carrying amount) of each cash register on 31 December 2022 using the straight-line method of depreciation? Group of answer choices R9 600 R9 000 R8 600 R8 050 R9 550 Flag question:

Question 4 Question 1 pts During the current financial year, a company had revenues of R500 000, cost of goods sold of R360 000, and an income tax rate of 35 percent on profit before taxes. What was the company's current year profit for the year? Group of answer choices R500 000 R49 000 R91 000 R325 000 R175 000 Flag question:

Question 5 Question 1 pts If gross profit percentage achieved by a company is 40%, what is the mark-up percentage on cost? Group of answer choices 67% 100% 250% 60% 40% Flag question:

Question 6 1 pts Which of the following events will cause retained earnings or accumulated earnings to increase? Group of answer choices Dividends declared by the company. Profit reported for the period. Revaluation of non-current assets. Issuance of shares in exchange for cash. Loss reported for the period. Flag question:

Question 7 1 pts Before any year-end adjustments are made, the profit of Bennett Company is R76 600. The following adjustments are necessary: office supplies used, R3 220; cash received from a client in advance for services not yet performed but included as part of revenue, R5 420; services performed for clients but not yet recorded or collected, R3 700; interest accrued on short-term loan, R3 100. After adjusting entries are made for the items listed above and ignoring tax, Bennett Company's profit will be: Group of answer choices R66 580 R79 400 R73 980 R74 760 R68 560 Flag question:

Question 8 1 pts Transaction Capital Inc. has the following balances on its extracted statement of financial position: cash of R67 million, accounts receivables of R127 million, inventory of R200 million, total assets of R860 million, current liabilities of R220 million and non-current liabilities of R335 million. What is Transaction Capital Inc.s equity ratio? Group of answer choices 154.95% 109.84% 64.53% 72.41% 35.46% Flag question:

Question 9 1 pts On 1 January 2021, Wasson Company purchased a delivery vehicle costing R400 000. The vehicle has an estimated 6-year life and a R40 000 residual value. Wasson uses the units-of-production depreciation method and Wasson estimates that the vehicle will be driven 100 000 miles. What is the vehicle's book value (i.e., carrying value) as of 31 December 2022, assuming the vehicle was driven 10 000 miles during 2021 and driven 18 000 miles during 2022? Group of answer choices R248 000. R299 200. R360 000. R288 000. R259 200. Flag question:

Question 10 pts Which of the following statements about impairment losses on assets is false? Group of answer choices Impairment loss is the difference between an asset's carrying value and its recoverable amount. After recognising the impairment loss, the carrying amount of the asset less residual value shall be depreciated over the assets remaining useful life. Recoverable amount is the higher of the assets fair value less costs to sell and its value in use. Impairment loss, if any, is recognised in the statement of comprehensive income. An asset is impaired, and an impairment loss would be recognized in the period if the recoverable amount of the asset exceeds its carrying amount. Flag question:

Question 11 Carter Company disposed of an asset at the end of the eighth year of its estimated useful life for R24 000 cash. The asset's useful life was originally estimated to be 10 years. The original cost was R70 900 with a depreciable amount of R64 000. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal? Group of answer choices R12 800 loss. R17 600 gain. R11 200 loss. R4 300 gain. R24 000 gain. Flag question:

Question 12 Thebe Holdings invested R525 000 into a fixed deposit for five years. The fixed deposit earns interest of 9% per annum compounded monthly. How much will the interest earned be on the fixed deposit after the five years? Group of answer choices R236 250 R821 983 R282 778 R807 778 R296 983 Flag question:

Question 13 Skylar Company issued R50 million bonds of 10% per annum at par on 1 January 2022. On 31 December 2022, the bonds were trading on the bond exchange at R52.5 million. Since the issue date, what has happened to the market rate of interest? Group of answer choices None of the above. The market rate increased. The market rate decreased. The change in the market rate cannot be determined. The market rate stayed the same. Flag question:

Question 14 1 pts On 1 January 2022, Tonika Company issued a four-year, R10 million bond with a coupon of 7% per annum. The interest is payable annually each on 31 December. The issue price was R9 668 000 based on an 8% effective interest rate. The value of the bond that will be reported in the statement of financial position of Tonika Company using the effective-interest method on 31 December 2022 amounts to: Group of answer choices R9 668 000 R9 544 760 R10 344 760 R10 441 440 R9 741 440 Flag question:

Question 15 Question 151 pts Which of the following statements is false: Group of answer choices An accounts payable turnover ratio of 12 indicates that a company takes approximately 30 days, on average, to pay its suppliers. Current liabilities are those liabilities due within one year or due within an operating cycle of the company. Non-current liabilities are considered in evaluating the solvency of a business. Liquidity refers to the ability to pay all debts within one year or within an operating cycle of the company. Working capital is a measure of short-term liquidity and is calculated by subtracting the current liabilities from the current assets. Flag question:

Question 16 Which of the following transactions must be reported in the cash flow statement as a cash flow from financing activities? Group of answer choices Cash payment to employees and suppliers. Paying cash to the bank to settle long-term loans. The cash payment for acquisition of land and buildings. The cash payment of interest expense. Purchasing shares of stock of another company using cash. Flag question:

Question 17 1 pts Darwin Company, a manufacturer, has reported profit for the year of R200 000, accounts receivable increased by R25 000, depreciation expense of R47 000 and accounts payables decrease of R7 000. Using the indirect method, how much was Darwin Company's net cash provided by operating activities? Group of answer choices R279 000. R215 000. R171 000. R227 000. R257 000. Flag question:

Question 18 1 pts Which of the following statements is true: Group of answer choices A very high current ratio and a low quick ratio may indicate the company is not collecting its accounts receivable in a timely manner. Return on equity (ROE) by the DuPont model is a function of three ratios: net profit margin, return on assets, and financial leverage. Cash collected from customers is a cash flow from operating activities and is calculated when using the indirect method for preparing the statement of cash flows. Finding comparable companies to compare performance is important because ratios in isolation are difficult to evaluate. Both the gross profit percentage and the net profit margin use sales revenue in the numerator. Flag question:

Question 19 1 pts What was the current ratio of Agnes Company, a company that reported current assets of R143 000, total liabilities of R293 000 and non-current liabilities of R193 000? Group of answer choices 2.00 0.49 0.70 0.74 1.43 Flag question:

Question 20 1 pts A company makes 70% of its sales from credit sales. The average number of days to collect accounts receivables during 2022 (a year with 365 days) based on total sales revenue of R310 000 and accounts receivable balance of R10 750 at the end of the 2022 financial year amounts to: Group of answer choices 10 days. 41 days. 13 days. 18 days. 21 days.