Question 3 (LO1; LO2; LO3; LO5) (I) a) b) c) d) When evaluating control accounts, there are two types of discounts that can be applied. There is a discount that will benefit customers, but it becomes an additional expense for the business. While, on the other hand, there is another discount which creditors give to businesses to incentive them to pay their debts faster. Thus, is discount allowed supposed to be on? Trade Payables Ledger on the credit side. Trade Payables Ledger on the debit side. Trade Receivables Ledger on the debit side. Trade Receivables Ledger on the credit side. (15 marks) (II) a) b) (III) a) b) c) d) (5 marks) The sole trader and the business are not seen as separate entities, because each one does not have distinct bank accounts. Is this statement true or false? True False (5 marks) Which alternative is correct? The Balance Sheet also called Statement of Financial Position shows all the assets, liabilities, and capital of a business. On the other hand, the Income Statement, popularly known as Profit and Loss shows the amount of profit or loss the business had in that year. To calculate Cost of Sales, businesses need to calculate your total revenue, add opening inventory and purchases, and finally subtract the closing inventory. All the items listed in this sentence are expenses: wages & salaries, discount received, insurance, electricity, and motor vehicles expenses. Financial accounting information are used only by internal stakeholders. On the other hand, Management accounting information are used mainly by externally. Both business information, are used on the decision-making process