10.1.5 ACCOUNTING 1: ASSIGNMENT 1 [100] QUESTION ONE [15] Four alternatives are provided for each of the following questions. Choose the correct alternative for each of the questions/statements. Questions 1.1 to 1.5 carry 1 mark each. Questions 1.6 to 1.10 carry 2 marks each. Write down the question number and the letter corresponding to your choice next to the question number. E.g. 1.12 E

1.1 The components of a complete set of financial statements are the following:

A) Statement of financial position, Statement of changes in equity, Statement of comprehensive income and Notes.

B) Statement of changes in equity, Statement of financial position, Statement of cash flows and Statement comprehensive income.

C) Statement of financial position, Statement of cash flows, Statement of comprehensive income, and Notes.

D) Statement of changes in equity, Statement of comprehensive income, Statement of financial position, Statement of cash flows and Notes. (1)

1.2 The elements shown in a set of financial statements are:

A) Assets, equity, liabilities, income and expenses.

B) Equity, liabilities, income, final accounts and assets.

C) Profit, losses, assets, control accounts and liabilities.

D) Assets, liabilities, income, expenses and nominal accounts. (1)

1.3 Which one of the following represents the net worth of an entity at any specific point in time:

A) Statement of comprehensive income

B) Statement of financial position

C) Statement of cash flows.

D) Statement of changes in equity. (1)

1.4 A resource under the control of an entity arising from past events from which future economic benefits are expected to flow in to the entity refers to which one of the following: A) Asset. B) Income. C) Liability. D) Expense. (1) 1.5 A decrease in economic benefits that results in a decrease in the equity of an entity during a specific accounting period, except for distribution to owners, describes which one of the following: A) Asset. B) Income. C) Expense. D) Liability. (1) 1.6 Simphiwe, a student, bought 50 memory sticks at R40 each for cash. All the memory sticks were marked to sell at R80 each. The sticks were sold for cash within 10 days, as follows: 40 were sold at R80 each, 6 at R75 each and 4 at R70 each. The gross profit percentage on sales (calculated to the nearest 2 decimal places) is; A) 48,25%. B) 49,11%. C) 96,5%. D) 100% (2) 1.7 On 3 January 2019 Zandiles Boutique bought trade goods on credit from Noms Wholesalers for R22 000, subject to a trade discount of 10%. A settlement discount of 5% is granted if the account is settled within 30 days from the date of purchase. If payment for this purchase is made on 1 March 2019, which one of the following is the amount that Zandile should pay Noms Wholesalers in terms of the agreement of purchase and sale: (ignore VAT) A) R19 800. B) R22 000. C) R18 810. D) R20 790. (2) 1.8 Assume that Zandiles Boutique registered as a VAT vendor effective 1 March 2019. Zandiles Boutique had a VAT input total amount of R24 760 and a VAT output total amount of R37 860 at 31 March 2019. Which one of the following represents the balance of the VAT control account at 31 March 2019? A) R13 100 debit. B) R13 100 credit. C) R62 620 debit. D) R62 620 credit. (2) 1.9 Construction Boys CC, a registered VAT vendor, purchased equipment for R92 000 (inclusive of 15% VAT) on credit from Jayzi Ltd. Arrangements were made to settle the account over a six month period. Which of the following statements is correct when recording the purchase of the equipment in the accounting records of Construction Boys CC? A) Debit equipment account (R105 800), credit VAT output (R13 800), credit creditors control: Jayzi Ltd (R92 000). B) Debit equipment account (R92 000), debit VAT input (R13 800), credit creditors control: Jayzi Ltd (R105 800). C) Debit equipment account (R80 000), debit VAT input (R12 000), credit creditors control: Jayzi Ltd (R92 000). D) Debit equipment account (R92 000), credit VAT output (R12 000), credit creditors control: Jayzi Ltd (R80 000). (2)

1.10 N Minajo received an electronic funds transfer (EFT) of R4 500 from A Grand, a debtor, in full settlement of her account of R5 000. Both Minajo and Grand are not registered as VAT vendors. Which of the following is the correct option to record the receipt in the accounting records of N Minajo? A) Debit bank account (R5 000), credit debtors control (R4 500), and credit settlement discount granted account (R500). B) Debit bank account (R4 500), credit debtors control (R5 000), and debit settlement discount received account (R500). C) Debit debtors control (R5 000), credit bank account (R 4 500), and credit settlement discount received account (R500). D) Debit bank account (R4 500), credit debtors control account (R5 000), and debit settlement discount granted account (R500). (2)