Question 2 Question 2.1

A credit balance on a ledger account indicates

1. an amount owing to the business

2. an asset or expense

3. a liability or an expense

4. a liability or income

Question 2.2 An entity which complies with IFRS 9 holds a financial asset which gives rise on specified dates to cash flows that are solely payments of principal and interest. The entitys only objective in holding this asset is to collect these cash flows. This financial asset should be measured at:

1. Original cost

2. Fair value or amortised cost

3. Amortised cost

4. Fair value

Question 2.2 As of 1 January 2021, Elena Store had a capital balance of R100 000. During the year Elena Store had revenues and expenses amounting to R80 000 and R54 000 respectively. On 31 December 2021, the owner conducted a stock take and realised that an inventory valued at R5 000 was damaged. The salvage value of the damaged inventory was estimated at R1 500. In addition, the owner (Elena), withdrew R20 000 for her personal use. Which one of the following alternatives represents the correct capital balance in the statement of financial position of Elena Store as at 31 December 2021?

1. R110 000

2. R116 500

3. R122 500

4. R102 500

5. R101 000

Question 2. 3

How does the Conceptual Framework explain the role of stewardship?

1. Financial reports are not intended to provide information needed to assess stewardship.

2. Providing information needed to assess managements stewardship is identified as an additional objective of financial reporting, equal in prominence to providing financial information useful to users in making decisions relating to providing resources to the entity.

3. Decisions relating to providing resources to the entity depend on users assessment of the amount, timing and uncertainty of the prospects for future net cash inflows to the entity and on their assessment of management's stewardship.

4. Providing information needed to assess stewardship is more important than providing information needed to assess the prospects for future cash inflows to the entity.

Question 2.4

On 1 March 2021, Malandela Ltd purchased 20 000 ordinary shares for a consideration of R1,20 per share, from JMPD Blue Ltd. On 28 February 2022, the fair value of shares held at JMPD Blue Ltd amounted to R26 000. On which financial statement of Malandela Ltd would the change in the value of shares be disclosed?

1. Statement of profit or loss and other comprehensive income

2. Statement of financial position

3. Statement of changes in equity

4. Statement of cash flows

Question 2.5

On 13 February 2022, Ndabezitha Wholesalers sold R1 500 worth of inventory on credit to Sonke Grocery Store, subject to a trade discount of 25%. A cash discount of 15% will be given if the account is settled within 30 days. Which one of the following amounts represents the correct amount received by Ndabezitha Wholesalers on 15 March 2022?

1. R1 500,00

2. R1 275,00

3. R1 350,00

4. R956,25

5. R1 012,50