SOB 1030 Review questions Q17. All the sales made by a retailer are for cash, and her sale prices are fixed by doubling cost. Details recorded of her transactions for September 20X6 are as follows: 1 Sept Inventories 30 Sept Purchases for month Cash banked for sales for month Inventories $ 40,000 60,000 95,000 50,000 Which TWO of the following conclusions could separately be drawn from this information? 1 $5,000 cash has been stolen from the sales revenue prior to banking. 2 Goods costing $5,000 have been stolen. 3 Goods costing $2,500 have been stolen. 4 Some goods costing $2,500 had been sold at cost price. ABCD 1 and 2 1 and 3. 2 and 4 3 and 4 (2 marks) Q18. A company owns a number of properties which are rented to tenants. The following information is available for the year ended 30 June 20X6: Rent 1 July 20X5 30 June 20X6 Rent in advance in arrears $ 4,800 8,700 $ 134,600 144,400 Cash received from tenants in the year ended 30 June 20X6 was $834,600. All rent in arrears was subsequently received. What figure should appear in the company's statement of profit or loss for rent receivable in the year ended 30 June 20X6? A $840,500 B $1,100,100 C $569,100 D $828,700 Q19. (2 marks) The carrying amount of a company's non-current assets was $200,000 at 1 August 20X0. During the year ended 31 July 20X1, the company sold non current assets for $25,000 on which it made a loss of $5,000. The depreciation charge of the year was $20,000. What was the carrying amount of non- current assets at 31 July 20X1? A $150,000 B $155,000 C $170,000 D $175,000 Q20. (2 marks) A B C Which of the following calculates a sole trader's net profit for a period? Closing net assets + drawings- capital introduced-opening net assets Closing net assets + drawings + capital introduced -opening net assets Closing net assets - drawings + capital introduced - opening net assets D Closing net assets-drawings-capital introduced -opening net assets (2 marks) Q21. Which of the following statements are TRUE about limited liability companies? (1) The company exposure to debt and liability is limited (2) Financial statements must be produced (3) A company continues to exist regardless of the identity of its owners A 1 and 3 only B 1,2 and 3 C 1 and 2 only D 2 and 3 only