question 1

Question 2

What is included in the statement of financial position of a business?

• A.

  Income, expenses, assets and liabilities.

• B.

  Capital, sales and assets.

• C.

  Assets, liabilities, profit on disposal of non-current assets.

• D.

  Capital, drawings, assets and liabilities.

• E.

  Assets, discounts and liabilities

Question 3

The inexperienced accounting clerk wrongfully entered the manager's salary of R11 000 into the insurance account. The correcting entry will have the following effect on the accounting equation ...

• A.

  assets remain unchanged, equity decreases.

• B.

  assets decrease, equity increases.

• C.

  assets increase and decrease.

• D.

  assets increase, equity decreases.

• E.

  equity increase and decrease.

XYZ Club is a non-profit organisation that was started by 160 members on 1 January 2018. The objective of XYZ Club is to address gender-based violence that is faced by South African citizens, by conducting workshops, road shows and counselling to perpetrators, victims and those who have not yet experienced it. On 1 January 2019 XYZ Club opened a small shop to raise additional funding. The shop sells, printed T-shirts with messages such as speak-up, what holds your tongue, it begins with you and do not turn a blind eye etc. No T-shirts were on hand on 1 January 2019. The constitution of XYZ Club indicated the following: The small shop for T-shirts: 1. XYZ Club purchased 2 000 T-shirts during the current financial period at a cost price of R45 per T-shirt 2. XYZ Club donated 130 T-shirts to citizens during the year to raise more awareness about gender-based violence. 3. 340 T-shirts were on hand on 30 December 2019 (considered as final inventory count for the current financial year). 4. T-shirts that have not been donated or not on hand, were all sold at a mark-up of 50% on cost price. The gross profit/loss amount for the small shop for T-shirts of XYZ Club to be shown in the trading statement for the year ended 31 December 2019 will be ? A. R34 425 . B. R19 125 C. R124 425 D. R28 575 E. R103 275 Reset Selection