Question 1

Indicate by choosing the correct option whether the following statement is true or false:

An electronic funds transfer made by a debtor of HS Stores on 12 June 20.1, is an example of an item that will appear on the bank statement of HS Stores but not in the cash receipts journal of HS Stores for June 20.1.

True

False

Question 2

Indicate by choosing the correct option whether the following statement is true or false:

The creation of an allowance for credit losses is done because the entity anticipates that some debtors may not pay their accounts.

True

False

Question 3

Credit losses recovered will be disclosed as a /an in the financial statements of an entity.

A. non- current asset

B. current asset

C. income

D. expense

E. current liability

Question 4

Ms B Khumalo, a tenant, of HS Stores has listed HS Stores as a beneficiary on her bank account. This enables her to make provision for a scheduled payment to pay the monthly rent to HS Stores via the ATM on the 1st of every month. In which journal will the bookkeeper of HS Stores enter the above the transaction?

A. cash payments journal

B. sales journal

C. cash receipts journal

D. purchases journal

E. petty cash journal

Question 5

Inventory sold on credit will be recorded in thejournal.

A. general

B. sales

C. cash payments

D. cash receipts