Please be so kind to answer the following question Question 1 1 1 During periods where the consumer price index (CPI) is expected to decrease, a retail firm will have to A relax credit standards due to a decline in sales, a decrease in bad debts and a slowdown of cash outflow B expand due to declining interest rates, an increase in sales and improved feasibility of investment opportunities C apply credit standards more strictly due to declining interest rates, increase in sales, but a slowdown of cash inflow D budget more conservatively as a result of rising interest rates, a decline in sales and an increase in bad debts 1 2 ABC Manufacturers Ltd has to raise an additional R1 000 000 in equity The firm should ideally finance itself by means of A R300 000 in cash, R100 000 in accounts receivable and R600 000 of inventory B R900 000 in debentures, 10 000 ordinary shares at a par value of 100 cents each and R10 000 in retained earnings C 500 000 ordinary shares at a par value of 200 cents each D R300 000 in debentures and 700 000 non voting preference shares at 100 cents each 1 3 The statement of comprehensive income measures and it is also known as A revenue and gross profit earnings after tax trial balance B gross profit, earnings before income and tax (EBIT) and net profit Statement of financial performance C cost of goods sold and operating expenses balance sheet D sales, EBIT and earnings after tax cash flow statement 1 4 On the statement of financial position, fixed assets represent A gross fixed assets at cost minus depreciation expense B gross fixed assets at market value minus depreciation expense C gross fixed assets at cost minus accumulated depreciation D gross fixed assets at market value minus accumulated depreciation 1 5 Which statement is not correct with regards to financial accounting A Financial accounting is externally focused B Financial accounting is internally focused C Financial accounting is historical orientated D Financial accounting must follow externally imposed rules

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Question: Please be so kind to answer the following question: Question 1: 1.1 During periods where the consumer price index (CPI) is expected to decrease, a

Please be so kind to answer the following question:

Question 1:

1.1 During periods where the consumer price index (CPI) is expected to decrease, a retail firm will have to ...

A. relax credit standards due to a decline in sales, a decrease in bad debts and a slowdown of cash outflow.
B. expand due to declining interest rates, an increase in sales and improved feasibility of investment opportunities.
C. apply credit standards more strictly due to declining interest rates, increase in sales, but a slowdown of cash inflow.
D. budget more conservatively as a result of rising interest rates, a decline in sales and an increase in bad debts.

1.2

ABC Manufacturers Ltd has to raise an additional R1 000 000 in equity. The firm should ideally finance itself by means of ...

A. R300 000 in cash, R100 000 in accounts receivable and R600 000 of inventory.
B. R900 000 in debentures, 10 000 ordinary shares at a par value of 100 cents each and R10 000 in retained earnings.
C. 500 000 ordinary shares at a par value of 200 cents each.
D. R300 000 in debentures and 700 000 non-voting preference shares at 100 cents each.

1.3

The statement of comprehensive income measures ... and it is also known as ...

A. revenue and gross profit; earnings-after-tax trial balance.
B. gross profit, earnings before income and tax (EBIT) and net profit;Statement of financial performance.
C. cost of goods sold and operating expenses; balance sheet.
D. sales, EBIT and earnings-after-tax; cash flow statement.

1.4

On the statement of financial position, fixed assets represent ...

A. gross fixed assets at cost minus depreciation expense.
B. gross fixed assets at market value minus depreciation expense.
C. gross fixed assets at cost minus accumulated depreciation.
D. gross fixed assets at market value minus accumulated depreciation.

1.5

Which statement is not correct with regards to financial accounting?

A. Financial accounting is externally focused.
B. Financial accounting is internally focused.
C. Financial accounting is historical orientated.
D. Financial accounting must follow externally imposed rules.

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