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FAC Assignment Memorundum
Financial accounting (University of South Africa)
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Question 1
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your assignment!
I declare that the work submitted in this assignment is my own. I did not
request assistance to complete the assignment questions from any third
parties.
I declare that I did not provide assistance to other students completing the
assignment.
a.
Yes
b.
No
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The correct answer is:
Yes
Question 2
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An expense account normally has a debit balance.
Select one:
True
False
Feedback
Refer to learning unit 2.2
The correct answer is 'True'.
Question 3
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For every debit entry in the accounting records, there must be a credit entry.
Select one:
True
False
Feedback
Refer to the introduction of learning unit 2
The correct answer is 'True'.
Question 4
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Total debits of one transaction must be equal to the total credits of the next
transaction.
Select one:
True
False
Feedback
Refer to the introduction of learning unit 2
The correct answer is 'False'.
Question
5
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Equity can be calculated as follows for a sole proprietor: Issued share capital,
plus accumulated reserves, plus retained earnings (accumulated profits
minus accumulated losses).
Select one:
True
False
Feedback
Refer to section 1.6.1 of learning unit 1
The correct answer is 'False'.
Question 6
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Stationery can be classified as a liability in the financial statements.
Select one:
True
False
Feedback
Refer to section 1.6.2 of learning unit 1
The correct answer is 'False'.
Question 7
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A liability is defined as a present obligation of the entity to transfer an
economic resource as a result of past events.
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Select one:
True
False
Feedback
Refer to section 1.6.1 of learning unit 1
The correct answer is 'True'.
Question 8
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The fourth logical step to determine the result of a transaction is to classify
the affected accounts as assets, liabilities or equity.
Select one:
True
False
Feedback
Refer to learning unit 2.4.3
The correct answer is 'False'.
Question 9
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The objective of the conceptual framework is to identify information that is
not useful to potential and existing investors, lenders and other creditors.
Select one:
True
False
Feedback
Refer to section 1.5.1 of learning unit 1
The correct answer is 'False'.
Question
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10
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A debit card slip is an example of an internal source document.
Select one:
True
False
Feedback
Refer to learning unit 2.5.2
The correct answer is 'False'.
Question 11
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A delivery note is a buyer-generated source document used to place an order
with a vendor or supplier. When accepted by the seller, it becomes a legally
binding contract between the buyer and the seller. A delivery note is used
when a buyer wants to purchase supplies or inventory on account.
Select one:
True
False
Feedback
Refer to learning unit 2.5.3
The correct answer is 'False'.
Question 12
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A goods received note is a buyer-generated source document used to place
an order with a vendor or supplier. When accepted by the seller, it becomes a
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legally binding contract between the buyer and the seller. A goods received
note are used when a buyer wants to purchase supplies or inventory on
account.
Select one:
True
False
Feedback
Refer to learning unit 2.5.3
The correct answer is 'False'.
Question 13
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The reconciliation of business creditors with creditor statements is an
example of a built-in control measure.
Select one:
True
False
Feedback
Refer to section 1.4.1 of learning unit 1
The correct answer is 'True'.
Question 14
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Income and expenses which relate to each other must be included in the
same financial period, even if they occurred in different periods. This is
referred to as the “going concern”
Select one:
True
False
Feedback
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Refer to section 1.5.4 of learning unit 1
The correct answer is 'False'.
Question 15
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Depreciation can be classified as an expense in the financial statements.
Select one:
True
False
Feedback
Refer to section 1.6.2 of learning unit 1
The correct answer is 'True'.
Question 16
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Going concern is one of the fundamental qualitative characteristics of
financial statements.
Select one:
True
False
Feedback
Refer to section 1.5.4 of learning unit 1
The correct answer is 'False'.
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Tuesday, 6 September 2022, 1:24 PM
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75.00 out of 100.00
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Question 1
Complete
Not graded
Flag question
Question text
NB: If the below question is not answered, you will receive zero for
your assignment!
I declare that the work submitted in this assignment is my own. I did not
request assistance to complete the assignment questions from any third
parties.
I declare that I did not provide assistance to other students completing the
assignment.
a.
Yes
b.
No
Feedback
Your answer is correct.
The correct answer is:
Yes
Question 2
Incorrect
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Which of the following principles is a fundamental theoretical principle that all
general financial statements must be based upon.
Select one:
a.
Timelines
b.
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Honest presentation
c.
Understandability
d.
Immediate basis
Feedback
Refer to learning unit 1.5
The correct answer is: Understandability
Question 3
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On comparing the cash journals of SA Traders for the month ending 31
January 2020 with the bank statement for the same period, it was noted that
an amount of R520 for interest received appears on the banks statement but
has not been recorded in the subsidiary journals.
The correct entry in the accounting records of SA Traders should be the
following:
Select one:
a.
An entry of R520 in the cash payments journal of SA Traders for 31 January
2020.
b.
An entry of R520 in the credit column of the bank reconciliation statement of
SA Traders as at 31 January 2020.
c.
An entry of R520 in the cash receipts journal of SA Traders for 31 January
2020.
d.
An entry for R520 in the debit column of the bank reconciliation statement of
SA Traders as at 31 January 2020.
Feedback
Refer to learning unit 3.5.1 & example 3.10
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The correct answer is: An entry of R520 in the cash receipts journal of SA
Traders for 31 January 2020.
Question 4
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Accounting is a process consisting of three activities. Which of the following is
not an accounting activity?
Select one:
a.
Communicating the recorded financial information to internal and external
parties.
b.
Identifying the events that are evidence of economic activity, relevant to a
particular business.
c.
Separation of duties within the financial department of the business.
d.
Recording the monetary value of transactions in order to provide a
permanent history of the financial activities of the business.
Feedback
Refer to learning unit 1.1
The correct answer is: Separation of duties within the financial department of
the business.
Question 5
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Financial accounting is...
Select one:
a.
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the systematic recording of transactions.
b.
an action where money is paid and in return an item or service that the buyer
needs is obtained.
c.
the orderly and systematic identification and recording of the monetary
values of financial transactions of an individual or business entity, and the
reporting of the results of these transactions.
d.
a process involving the selecting of those events that are evidence of an
economic activity to the particular entity.
e.
a process involving only the calculation of the profit made by the entity.
Feedback
Refer to learning unit 1.1.
The correct answer is: the orderly and systematic identification and recording
of the monetary values of financial transactions of an individual or business
entity, and the reporting of the results of these transactions.
Question 6
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On 8 January 2022, SA Stores purchased a delivery van to the amount of
R150 000 on credit from SA Dealers. What will the effect of this transaction
on the accounting equation be?
Select one:
a.
Account debited
Loan: SA Dealers
Account credited
Bank
Assets
- R150 000
Equity
Liabilities
+ R150 000
Account credited
Bank
Assets
+ R150 000
- R150 000
Equity
Liabilities
b.
Account debited
Vehicles
c.
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Account debited
Vehicles
Account credited
Loan: SA Dealers
Assets
+ R150 000
Equity
Liabilities
+ R150 000
Account credited
Vehicles
Assets
+ R150 000
- R150 000
Equity
Liabilities
Assets
+ R150 000
Equity
Liabilities
+ R150 000
d.
Account debited
Bank
Feedback
Refer to learning unit 2.4, example 2.10
The correct answer is:
Account debited
Vehicles
Account credited
Loan: SA Dealers
Question 7
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In the financial statements, bank overdrafts will be classified as ………?
Select one:
a.
current assets
b.
non-current liabilities
c.
current liabilities
d.
non-current assets
Feedback
Refer to learning unit 2.3 and learning unit 1.6
The correct answer is: current liabilities
Question 8
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When closing off the income accounts by transferring their totals to the profit
or loss account for a business that uses a perpetual inventory system, how
will the closing transfers be reflected in the general ledger?
Select one:
a.
Account to be debited – capital account; Account to be credited – profit or loss
account
b.
Account to be debited – income accounts; Account to be credited – profit or
loss account
c.
Account to be debited – profit or loss account; Account to be credited –
income accounts
d.
Account to be debited – profit or loss account; Account to be credited –
expense accounts
Feedback
Refer to learning unit 3.2.11
The correct answer is: Account to be debited – income accounts; Account to
be credited – profit or loss account
Question 9
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Debit order payments that only appears on the bank statement must be
entered in the cash receipts journal.
Select one:
True
False
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Feedback
Refer to learning unit 3.5.1
The correct answer is 'False'.
Question 10
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Depreciation for accounting purposes refers to the allocation of the cost of
the asset to the financial periods in which the asset is used.
Select one:
True
False
Feedback
Refer to learning unit 3.3.2
The correct answer is 'True'.
Question 11
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When an entity applies the periodic inventory system, real time information is
provided to management that could aid with decision-making regarding
purchases, discounts and returns.
Select one:
True
False
Feedback
Refer to learning unit 3.2.5
The correct answer is 'False'.
Question 12
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A business bought a non-current asset on 1 July 2021 for R4 500. The
depreciation rate was given as 10% per annum on the reducing balance
method. What will the depreciation for the first year of the asset be if the
financial year-end of the business is 28 February 2022?
Select one:
a.
R300
b.
R450
c.
R900
d.
R405
Feedback
Refer to learning unit 3.3.2
The correct answer is: R300
Question 13
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As from 8 January 2016 the quantity or volume of goods or services supplied
must be reflected on a tax invoice where the consideration (price) is R5 000
or less for it to be considered valid.
Select one:
True
False
Feedback
Refer to learning unit 3.4.9
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The correct answer is 'False'.
Question 14
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In the financial statements, a mortgage bond will be classified as ………?
Select one:
a.
current assets
b.
non-current liabilities
c.
current liabilities
d.
non-current assets
Feedback
Refer to learning unit 2.3 and learning unit 1.6
The correct answer is: non-current liabilities
Question 15
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Which one of the following statements relating to net VAT payable or
refundable is incorrect?
Select one:
a.
A VAT refund may be claimed from SARS where a vendor’s permissible output
VAT deductions exceed the amount of input VAT for a tax period
b.
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A VAT payment will be due to SARS to the extent that the output VAT exceeds
the allowable input VAT deductions.
c.
A VAT refund may be claimed from SARS where a vendor’s permissible input
VAT deductions exceed the amount of output VAT for a tax period
d.
The difference between the amount of output VAT attributable to a tax period,
and the input VAT not previously claimed by a vendor, represents the VAT
payable to or refundable by SARS.
Feedback
Refer to learning unit 3.4.6
The correct answer is: A VAT refund may be claimed from SARS where a
vendor’s permissible output VAT deductions exceed the amount of input VAT
for a tax period
Question 16
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An amount of R2 052 includes VAT of 15%. What is the amount exclusive of
VAT?
Select one:
a.
R1 800,00
b.
R1 784,35
c.
R1 744,20
d.
R1 764,72
e.
R252,00
Feedback
Refer to learning unit 3, explanation 3.6
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The correct answer is: R1 784,35
Question 17
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An example of a non-current liability will be …
Select one:
a.
mortgage loan.
b.
a creditor.
c.
a bank overdraft.
d.
equipment purchased on credit.
Feedback
Refer to learning unit 2.3
The correct answer is: mortgage loan.
Question 18
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Which one of the following is not a form of business ownership in financial
accounting?
Select one:
a.
Close corporation
b.
Non-governmental organisation
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c.
Sole trader
d.
Partnership
Feedback
Refer to learning unit 1.3
The correct answer is: Non-governmental organisation
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