Section A: Multiple Choice Questions (20 marks) Select the best answer for each question Answer All 10 Questions Al Given the following information, what is the amount of Capital? Inventory $1,300; Machinery $12,000; Bank loan $5,600; Trade receivables $9,000; Trade payables $3,200; Cash $33,000. (A) $64,100 (B) $8,800 (C) $55,300 (D) $46,500 A2 Which of the following adjustments is CORRECT when Electricity has included the sole proprietor's personal expense? (A) Debit Cash and credit Electricity (B) Debit Electricity and credit Drawings (C) Debit Drawings and credit Electricity (D) Nothing to be done A3 A credit balance brought forward in a rent account means (A) we have paid that amount of rent in advance (B) the rent level is too high (C) a rebate has been made from rent company (D) we owe that amount of rent A4 If the net assets of an entity increases at the end of financial year, it indicates that the entity may (A) earn profit during the year (B) receive capital contribution during the year (C) draw capital from its capital account (D) (A) and (B) Page 2 of 18