Question 1 State whether the following are TRUE or FALSE 1.1 The statement of changes in equity reports on changes in the financial position of an enterprise on a certain date. T/F -false 1.2 Cash budgets are used to report on financial performance of an enterprise for a particular period. T/F 1.3 A loan obtained from Z Bank will be recorded as a cash outflow under financing activities in the statement of cash flows. T/F 1.4 The following information is disclosed in the Statement of Financial Position: > Bank overdraft R15 000, Cash float R2 000, Prepaid expenses R3 000. > Current liabilities in the Statement of Financial Position will amount to R15 000. T/F 1.5 The following information is disclosed in the Statement of Financial Position: > Capital R100 000, drawing R6 000, net profit R7 000. > Owner's equity in the Statement of Financial Position will amount to R101 000 T/F Choose the correct answer 1.6 Identify the relevant transaction for this entry: Owner's Equity 0 Assets +R50 000 Liabilities +R50 000 a) Bought inventory on credit R50 000 b) Sold inventory on credit R50 000 c) Sold inventory on credit R50 000 d) Cash paid to creditors R50 000 1.7 For every debit entry there must be a credit entry. T/F 1.8 Mica Stores The following information relates to the financial year ended 28 February 2021: Vehicles at cos R300 000 Accumulated depreciation R50 000 Depreciation is calculated at 10% on cost An old vehicle was disposed on 31 August 2020 for R20 000 cash. The disposed vehicle originally cost R25 000 an Accumulated depreciation on this equipment amounted to R3 000.