Sud Almed Hashi Ad B9-08- Insert Dew Designs A12 RFA Word References M Layout e view Search View Help QUESTIONS - PART 1 1 (SAFIA412:21, 23, 31.3.2) Profit is the result of recording income and expenditure correctly, you were asked to give an opinion on the current profitability of a business, which report would you look at to find the answer? a) Income statement b) Balance sheet c) Payroll report d) Cash flow statement 2. ( 8 412:21, 22, 23.4 One of the purposes of analysis is toe a) Calculate profits by Calculate bank balance c) Interpret income statement only. d) Measure the trend of the business 3. 42:11, 121.23 A purchase of a new copier for cash wuld affect which of the financial a) Balance sheet only b) income statement only c) Income statement and cash flow statement. d) Balance sheet and cash flow statement 6. Ari2:21, 21.2.5) When checking the financial transactions, if you dentify an error, what should you do a Leave it on the assumption the accountant will find it and make the correction by Use your policies and procedures manual to identify the correct person to whom to report Fix it yourself if you think you know how d) Report it to the police Type to search W - e Search AT2_RFA Word References Mailings View Review Help Sign Layout 5. (BSBFIA412: 1,3,2.1, 2.3) Depreciation is a common expense within a business. Which of the following statements are true? i. This transaction doesn't involve cash. ii. It is a loss. lil. Straight-line depreciation is only one method of recording depreciation. iv. It reflects the market value of the asset. a) All the statements are correct. b) Statements C. (ii) and (iv) are correct. c) Statements ) and (ii) are correct. d) No statements are correct. 6. (BSBF1A412: 2.1, 2.2, 2.3) Which of the following statements is correct? a) Cash and profit are the same when using accrual accounting. b) If a business makes a profit then it will always have an increase in net cash. c) Revenue and cash are the same d) with accrual accounting, profit will be calculated from the date the transaction occur. 7. (BSBFIA412: 1.1.1.3.2.1, 2.2) Under accrual accounting, at what point would you recond the transactions on an invoice you receive? a) At time of receiving the items on the invoice. b) When you receive the invoice. c) When you pay the invoice. d) When you have time. 8. (SBFIA412:1.3.2.3, 2.4) If Assets total $50,000 and Liabilities total $10,000 the equity of the business must a) $10,000 b) $40,000 c) $50,000 d) $60,000 ere to search