Question 5:

A favourable balance on the bank reconciliation statement means?

A. Credit balance on the cashbook

B. Credit balance on the bank statement

C. Debit balance on the cashbook

D. None of the above

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A cheque marked refer to drawer R/D means?

A. Bank is paying the owner of the account

B. Cheque is cashed same time

C. Cheque is not honoured by the bank

D. None of the above

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The following information is provided to you. Inventory amounting to R48 000, other current assets worth R24 000 and current liabilities to the value of R40 000.Calculate the current ratio.

A. 1.6:1

B. 1.8:1

C. 0.6:1

D. 1.2:1

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If you are given inventory of R48 000, other current assets of R24 000 and current liabilities of R40 000, the acid test ratio will be?

A. 1.6:1

B. 1.8:1

C. 0.6:1

D. 1.2:1

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A debtors collection period of one month means that:

A. In any given month, twelve debtors are expected to pay in full

B. One twelfth of debtors will turn out to be doubtful debts

C. The average debtor takes about one month to pay

D. Debtors are about twelve times as big as creditors

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The statement of profit or loss and other comprehensive income reflects the following balances. Sales R2 401 000 and a cost of sales amount of R1 600 668. What is the gross profit percentage?

A. 30%

B. 33%

C. 25%

D. 40%

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The statement of profit or loss and other comprehensive income reflects the following balances: Opening inventory R524 800, closing inventory R541 244 and cost of sales amount of R1 600 668. What is the inventory turnover rate (in months)?

A. 4 months

B. 5 months

C. 2 months

D. 6 months