Which one is not an objective of Internal Control on Finanacial Statements? A. Safeguarding of assets of the company B. Financial Statements are free from material misstatements C. Financial Statements are prepared on the basis of IFRS D. Financial Statements are correctly audited by the Independent Auditors

a	Financial Statements are free from material misstatements
b	Financial Statements are prepared on the basis of IFRS
c	Financial Statements are correctly audited by the Independent Auditors
d	Safeguarding of assets of the company

Question 6

The sale of equipment costing $8,000, with accumulated depreciation of $6,700 and sale price of $2,000, would result in a ? A. Loss of $1,300. B. Profit of $700. C. Loss of $6,000 D. Loss of $700.

a	Profit of $700
b	Loss of $1,300.
c	Loss of $6,000
d	Loss of $700

Question 7

Madam Mona set up MM & Company, a sole proprietorship business. Which of the following assertions applies to MM & Company? A. MM & Co. is a business entity, not a legal entity and has limited life B. MM & Co. has limited life, is a business entity and has limited liability C. MM & Co. can file tax return in own business name and has limited life but unlimited liability D. MM & Co. does not have unlimited life or limited liability but can sue ABC Co. in its own name

a	MM & Co. is a business entity, not a legal entity and has limited life
b	MM & Co. can file tax return in own business name and has limited life but unlimited liability
c	MM & Co. does not have unlimited life or limited liability but can sue ABC Co. in its own name
d	MM & Co. has limited life, is a business entity and has limited liability

Question 8

Which of the following would not be a basis for estimating the useful life of an equipment? A. Hours of service B. Years of service C. Weight of the equipment D. Potential production in units

a	Years of service
b	Hours of service
c	Weight of the equipment
d	Potential production in units