Question 16 5 Points All transactions recorded in the accounts of a business should have supporting (original) documentation because: A Original documentation is not a necessary, or even important, part of business accounting. Paperwork is a vital aspect of business and trading operations. Documentation provides the authority for, and evidence (3rd party) of the actual transaction taking place. All bookkeepers must be highly skilled at document filing document retrieval and written communication Question 17 5 Points Closing inventory tle unsold purchases at the end of an accounting period) is accounted for as a current asset because: A Closing inventory could only be accounted for as an income if it's value was zero or less. B of the money measurement (cash basis) principle of accounting Profits would be increased it closing inventory were treated as an income and this would be in breach of the prudence principle of accounting of the matching (accruals) principle of accounting. Question 18 S Points A specific debt is written off at the end of one period of account but is repaid in full during the following accounting period. The journal entry required to account for the payment is: Debit - Bank a/c Credit - Sales a/c B Debit - Bank a/c Credit - Bad debts account Debit - Bad debts a/c: Credit Bank a/c Debit - Bad debts a/c: Credit - Sales a/c Question 19 5 Points A business has a capital account balance of 30,000 (credit) and liabilities of 15,000. How much they have assets? A 50,000 40,000 35,000 45,000 Question 20 5 Points Examine Jack's sales ledger summary below: Balance c/fwd. Balance Invoices Returns B/fwd. Issued Inwards Jack 2,650 3,240 The closing total sales ledger balance te Balance cfwd), therefore, is: Receipts to Bank 2,400 Discounts Allowed 50 ? A) 53,400 B 3.490 5,840 3,440