21-HE-FT-DP-BM-IFA120-Y1 - Current Liability - Accounting Assignment Help

Assignment Task

Question One
1. Which of the following is not a current liability?
a) A bank overdraft
b) Trade and Other Payables
c) Prepaid expense
d) Accrued expense

2. Which of the following statements regarding the Statement of Financial Position is true?
a) the Statement of Financial Position reflects the financial position of an enterprise for the entire financial period being reported
b) the Statement of Financial Position reflects the financial position of an enterprise only on a specific date
c) the Statement of Financial Position is a measure of the profit or loss that the enterprise has made over a certain period, usually one year
d) the Statement of Financial Position does not take into account transactions in respect of the owners of the enterprise

3. Which of the following errors will NOT be revealed by the trial balance?
a) inventory to the value of 5 000 was incorrectly posted to the Equipment account
b) the Prepaid Expense account of R4 500 was incorrectly entered on the credit side of the trial balance
c) the balance on Trade Creditors was incorrectly calculated to be 56 000 instead of 54 000 and entered on the credit side of the trial balance
d) the balance of accrued expense account of 12 000 was omitted in full

4. Which of the following statements is true?
a) all accounts are debited when they increase and credited when they decrease
b) asset accounts increase on the debit side
c) asset accounts increase on the credit side
d) liability accounts increase on the debit side

5. Orange Traders had Cost of Sales of 19 000, Opening Stock of 5 000 and Closing Stock of 10 000.
How much were their Purchases?
a) 24 000
b) 29 000
c) none of the above
d) cannot be determined by the information given

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