Question $1$

Which one of the following represents the net worth of an entity at any specific point in time:

a$.$

Statement of comprehensive income

b$.$

Statement of financial position

c$.$

Statement of cash flows.

d$.$

Statement of changes in equity.

Question $2$

Which account is not a liability account?

a$.$

Accounts payable

b$.$

Accrued expenses

c$.$

Accrued income

d$.$

Income received in advance

Question $3$

$$A decrease in economic benefits that results in a decrease in the equity of an entity during a specific accounting period, except for distribution to owners$,$ describes which one of the following:

Question $3$

a$.$

Asset

b$.$

Income

c$.$

Expense

d$.$

Liability

Question $4$

Asset accounts have what type of balance:

a$.$

Debit

b$.$

Credit

c$.$

Contra

d$.$

Negative

Question $5$

Simphiwe, a student, bought $50$ memory sticks at R$40$ each for cash. All the memory sticks were marked to sell at R$80$ each. The sticks were sold for cash within $10$ days, as follows: $40$ were sold at R$80$ each, $6$ at R$75$ each and $4$ at R$70$ each. The gross profit percentage on sales $($calculated to the nearest $2$ decimal places$)$ is;

a$.$

$48,25\%.$

b$.$

$49,11\%.$

c$.$

$96,5\%.$

d$.$

$100\%$

Question $6$

Drawings account is;

a$.$

An equity account.

b$.$

A Liability account.

c$.$

An expense account.

d$.$

An asset account.

Question $7$

The elements shown in a set of financial statements are:

a$.$

Assets, equity, liabilities, income and expenses.

b$.$

Equity, liabilities, income, final accounts and assets.

c$.$

Profit, losses, assets, control accounts and liabilities.

d$.$

Assets, liabilities, income, expenses and nominal accounts.

Question $8$

Which one of the following statements presents the financial performance of the entity for a specified period:

a$.$

Statement of financial position.

b$.$

Statement of cash flows.

c$.$

Statement of comprehensive income.

d$.$

Statement of changes in equity.

Question $9$

The account format that displays debits, credits, balances and headings:

a$.$

General journal

b$.$

General ledger

c$.$

T$-$Account

d$.$

Ledger account

Question $10$

On $1$ May $2022$ Nkosi started a cleaning service business. Five of the transactions for the month ended $31$ May $2022$ are listed below. Choose the correct option to show what effect the following transactions would have on the basic accounting equation: Assets $=$ Equity $+$ Liabilities.

Bought office furniture for R$23000$ on credit from Furno Supplies.

a$.$

Increase assets, no effect on equity and increase liabilities.

b$.$

Decrease assets, no effect on equity and decrease liabilities.

c$.$

Increase assets, decrease equity and no effect on liabilities.

d$.$

Increase assets, increase equity and no effect on liabilities.

Question $11$

On $3$ January $2019$ Zandile$$s Boutique bought trade goods on credit from Nom$$s Wholesalers for R$22000,$ subject to a trade discount of $10\%.$ A settlement discount of $5\%$ is granted if the account is settled within $30$ days from the date of purchase. If payment for this purchase is made on $1$ March $2019,$ which one of the following is the amount that Zandile should pay Nom$$s Wholesalers in terms of the agreement of purchase and sale: $($ignore VAT$)$

a$.$

R$19800.$

b$.$

R$22000.$

c$.$

R$18810.$

d$.$

R$20790.$

Question $12$

On $1$ May $2022$ Nkosi started a cleaning service business. Five of the transactions for the month ended $31$ May $2022$ are listed below. Choose the correct option to show what effect the following transactions would have on the basic accounting equation: Assets $=$ Equity $+$ Liabilities.

Nkosi provided services to Jam Entertainment Centre for R$15000$ on credit.

a$.$

Decrease assets, increase equity and no effect on liabilities.

b$.$

Increase assets, no effect on equity and increase liabilities.

c$.$

Increase assets, decrease equity and no effect on liabilities.

d$.$

Increase assets, increase equity and no effect on liabilities.

Question $13$

On $1$ May $2022$ Nkosi started a cleaning service business. Five of the transactions for the month ended $31$ May $2022$ are listed below. Choose the correct option to show what effect the following transactions would have on the basic accounting equation: Assets $=$ Equity $+$ Liabilities.

Paid Furno Supplies R$21000$ in full settlement of their account of R$23000.$

a$.$

Decrease assets, no effect on equity and decrease liabilities.

b$.$

Increase assets, increase equity and decrease liabilities.

c$.$

Decrease assets, increase equity and decrease liabilities.

d$.$

Decrease assets, decrease equity and decrease liabilities.

Question $14$

Construction Boys CC$,$ a registered VAT vendor, purchased equipment for R$92000($inclusive of $15\%$ VAT$)$ on credit from Jayzi Ltd$.$ Arrangements were made to settle the account over a six month period. Which of the following statements is correct when recording the purchase of the equipment in the accounting records of Construction Boys CC$?$

a$.$

Debit equipment account $($R$105800),$ credit VAT output $($R$13800),$ credit creditors control: Jayzi Ltd $($R$92$

Question $15$

$$A resource under the control of an entity arising from past events from which future economic benefits are expected to flow in to the entity$$ re