The purpose of full disclosure principle is to report:

a. information that could affect the decisions of users.

b. comparable information.

c. reliable information.

d. all information in a timely manner.

10.

Squires Ltd purchased equipment for $90 000 on 1 July 2020 which had an estimated useful life of 200 000 units or 4 years. The equipment was depreciated using the units of production method. The financial year of Squires Ltd ends on 30 June. What was the depreciation expense for year ended 30 June 2021 if 26 000 units were produced in that year?

a.

$23,400

b.

$22,500

c.

$11,700

d.

$11,000

11.

For which of the following errors should the appropriate amount be added to the balance as per bank statement on a bank reconciliation statement?

a. Cheque payment to accounts payable for $93 recorded as $39 by the company.

b. Deposit of $35 recorded on the bank statement as $350.

c. Cheque payment to accounts payable for $39 recorded as $93 by the company.

d. Deposit of $350 recorded on the bank statement as $35.