Question 5 5 Points A fixed asset has an original cost of 600,000 and is to be depreciated using the reducing balance method and at rate of 25%. The depreciation charge for year 3 of the asset's life will be E253,125 B 84,375 E150,000 D) 337,500 Question 6 5 Points The opening balance on the cash account of Crater was 200 and the closing balance is 130. Identifiable receipts and payments for the period were 5,850 and 4,220 respectively. The only other cash transactions made during the period were the personal drawings of Crater herself. Cash drawings, therefore, were: A 11,960 B) E1,700 E1,560 D) 1,800 Question 3 5 Points An enterprising individual purchased 60 greetings cards for 2400.c. Ef each). He later managed to sell 50 cards for 280 .c. 5.60 each). What is his trading profit on greetings cards 180 B 60 90 L70 Question 4 5 Points A fixed asset has an original cost of 44,800 and is to be depreciated using the reducios balance method and a rate of 254. The depreciation charge for year 2 of the asset's life will be A) 33,600 B) 18.400 11.200 4.800 Question 2 5 Points The opening balance on the fixed assets (NBV) account was 32,500. During the following period of account, a fixed asset costing 6,000 was acquired and an old fixed asset with an NBV of 2,000 was disposed. The closing balance on the fixed assets NBV account is 33,000. Depreciation for the year, therefore, wasi A) 4,250 B) 3,440 4,500 D) 3,500 Question 7 5 Points A specific bad debt is best described as: A debt that is more than 90 days old. A debt that may be paid in the future but also may not and therefore, a proportion of the outstanding amount is written off in compliance with the prudence principle of accounting. A debt that is unlikely to ever be paid and where details of both the customer and original sales are available. A debt that is unlikely to ever be paid but where details of the customer and the original sales cannot be traced. Question 8 5 Points Atrial balance did not balance and a suspense account was created an investigation of transactions revealed that a cash payment of 620 for wages was credited to both the bank account and the wages. The journal required to correct this errors A Debit - Wages alc (1,6403 Credit - Suspense a/c (1,640) B Debit - Suspense a/c (8201 Credit - Wages alc (E820) Debit - Wages a/c (8520: Credit Bank a/c (820) D Debit - Suspense a/c 1.640 Credit Wages alc (1,640) Question 9 5 Points A fixed asset with an original cost of 80,000 and accumulated depreciation of 76,000 was sold. The disposal proceeds (cash) produced an accounting loss on disposal of 7,00. The disposal proceeds, therefore, were: E76,700 79,300 4,000 0 3,300 Question 10 S Points A fixed asset has an original cost of 65,000 and is to be depreciated using the straight line method and an annual rate of 12.5% What is the expected useful economic life of the fixed asset? A) 2590 B) E8,125 10 years D 3 years