Question 9 5 Points Sales for the period were 74,500 and gross profit was established at 34,750. Opening inventory was valued at 3,000 and purchases for the period were 40,000. Closing inventory, therefore, was valued at: 3,250 2,750 3,050 3,550 Question 8 5 Points An increase in profits will cause an increase in which of following options? Payables Accruals Assets D) Liabilities Question 7 5 Points The requirement to account for accruals and prepayments in financial reporting arises, in the main, as a result of: The matching principle of accounting B The double-entry bookkeeping system The work of electronic / computerised accounting systems The entity principle of accounting 5 Points Question 5 A specific bad debt is best described as: A debt that is unlikely to ever be paid but where details of the customer and the original sales cannot be traced. 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 in 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, Paints Question 6 Atrial balance did not balance and a suspense account was created an investigation of transactions revealed that cash payment of E650 for wages was credited to both the bank account and the water. The journal equired to correct this errors A) Debit Suspense alc4650 Credit Wages a/c 650) B Debit Suspense C 1.300) Credit Wages a/c 1001 Debit Wages al 650: Debit Bank a/(650) Debit Wages al 11.3001 Credit Suspense a/c 1300