Which one of the following statements is incorrect regarding the nature of accounting? A. Accounting use words and figures to convey financial Information to the users of such information B. Financial resources are unlimited C. The recipient of this specialised message the user of financial information) must understand it. D. This knowledge will ultimately help you understand the message contained in financial statements. Accounting is a specialised means of communication which is used to convey a specialized message about an entity's finances Reset Seed Question 2 of 20 1 Points Which on of the following statements is correct? A posting to the debit side of a ledger account wilt, where applicable, always have the effect A. A decrease in the amount of an income account B. a decrease in the balance of an asset account C. an increase in the balance of a liability account D. a decrease in the amount of an expense account E. Increase in the amount of an equity account Question 3 of 20 1 Point Which one of the following transactions will result in a change in the equity of an entity operating on a bank overdraft? A. A cheque issued in payment of a creditor's account B. Property bought on credit C.Acheque issued for payment of assets purchased for cash. D. A cheque received from a debtor in payment of his/her account. E. A cheque issued for payment of salaries Question 9 of 20 2 Points The owner of Pet Spa provided you with the following information for the year ended 28 February 20.2. R Equipment.. 200 000 Trade receivables control.. 20 000 Bank........... 10 000 Trade payables control.. 30 000 Which of the following represents the correct calculation of Pet Spa's equity on 28 February 20.22 = Equity R180 000 Assets R210 000 Liabilities R30 000 B. Equity R220 000 Assets R240 000 Liabilities R20 000 Equity (R220 000) - Assets R20 000 Liabilities R240 000 Equity (R200 000) - Assets R30 000 Liabilities R230 000 E. Equity R200 000 = Assets R230 000 Liabilities R30 000 Reset Selection Question 12 of 20 2 Points Which one of the following options represents the correct entries in the general ledger for carriage on purchases paid cash if an entity uses perpetual inventory control system? A Bank account debited: Inventory account credited. B. Inventory account debited Bank account credited. C. Carriage on purchases account debited Trade payables control account credited, D. Inventory account debited Trade payables control account credited. E. Carriage on purchases account debited: Bank account credited Best Selection Question 13 of 20 2 Points The following statements relate to a bank reconciliation: (1) Amounts deposited directly into the current account of the entity by third parties, will have to be entered on the cash payments journal when the bank reconciliation is being done. (2) Bank charges and debit orders that appear on the bank statement of the entity but not in the bank account, in the general ledger, of the entity will have to be entered onto the cash receipts journal when the bank reconciliation is being done. (3) Errors made by the bank will have to be corrected by the bank and will appear nowhere when the bank reconciliation is being done. (4) A credit balance in the bank statement and a debit balance in the entity's bank account in the ledger show a favourable bank balance. Which one of the following groups correctly reflects all the statements that are true? A. (3) and (4) B. Only (4) C. (2) and (4) D. (1), (2) and (3) E. (1), (2) and (4) Reset Selection Question 14 of 20 2 Points Ms E Snow a debtor of MJ Stores owed R5 000 to MJ Stores which has been overdue for the past 8 months. Interest on her overdue account is R250. The interest has not been recorded in the books of MJ Stores. Which one of the following represents the correct general ledger entries of MJ Stores to record the interest on overdue accounts? A. General ledger Account debited Trade receivables control Account credited Interest income Amount R250 B. General ledger Account debited Interest expenses Account credited Trade receivables control Amount R250 General ledger Account debited Trade payables control Amount Account credited Interest income R250 General ledger Account debited Interest income Account credited Trade receivables control Amount R250 E. General ledger Account debited Trade receivables control Amount Account credited Interest expenses R250 Ronnt Solantinn