Which of the following statements are correct? (a) When income earned by an entity is more than its expenditure, the entity makes a profit. (b) When the income earned by an entity is less than its expenditure, the entity makes a profit. (c) The profit that an entity makes, increases the net worth of the owner. (d) The loss that an entity makes, decreases the net worth of the owner. (e) The statement of financial position measures the financial performance of an entity. (1) a,b,c,d and e. (2) a,b,c and e. (3) a,c,d, and e. (4) a,b,c and d. (5) a,c,and d. Gizmo Traders bought a new electricity generator, to be used during load shedding, from Luna Lights for R50 000 and paid for it through an electronic funds transfer (EFT). What effect will the above transaction have on the accounting equation if Gizmo Traders has a favourable bank balance? 4. Liabilities Equity +R50 000 0 +R50 000 +R100 000 Assets +R50 000 +R50 000 eaosa +R50 000 0 +R50 000 -R50 000 R50 000 FAC1502/101/3/2020 ASSIGNMENT 01 (continued) 5. On 29 March 20.9, the bookkeeper of Gizmo Traders recorded the cash sales of R5 750 for the day. Which of the following represents the correct posting for the above transaction? VAT output VAT input R750 Sales R5 000 R5 000 Journal (1) Cash receipts journal (2) Cash payments journal Cash receipts journal Cash receipts journal (5) Cash payments journal R750 R750 GEOR R750 R750 R5 000 R5 000