MULTIPLE CHOICE (10 MARKS) Instructions to student:

You are required to read each question carefully and select the most correct answer

1. Which of the following is an internal user of financial information?

1. Management
2. South African Revenue Services
3. Banks
4. Investors

2. Which of the following are internal reporting questions:

1. How did your results compare to the budgets/forecasts?
2. What are the sales, expenses, debtors and creditor trends looking like?
3. What is your cash flow outlook for the next two months?
4. All of the above

3. Which is the first step of the accounting cycle?

1. Source documents
2. Financial statements
3. Ledger
4. Transactions

4. The source document used to record a cash sale is?

1. Deposit slip
2. Credit note
3. Debit note
4. Cash invoice or cash receipt

5. Which of the following is not a journal?

1. General journal
2. Cash receipts journal
3. Depreciation journal
4. Cash payments journal

6. Which one of the following is not a current asset?

1. Bank
2. Inventory
3. Sales
4. Debtors

Use the following information to answer questions 7 to 10

The following information relates to Petunia Ltd for the year ended 28 February 2022

Land and buildings	2 000 0000
Equipment	200 000
Vehicles	120 000
Cash	20 000
Bank (unfavourable)	30 000
Creditors	10 000
Debtors	15 000
Inventory	80 000

7. What is the value of non-current assets?

1. R2 520 000
2. R2 320 000
3. R2 000 000
4. R2 835 000

8. What is the value of current assets?

1. R135 000
2. R165 000
3. R2 320 000
4. None of the above

9. What is the value of current liabilities?

1. R10 000
2. R40 000
3. R60 000
4. None of the above

10. What is the value of non-current liabilities?

1. R10 000
2. R40 000
3. R60 000
4. None of the above