STATEMENT OF FINANCIAL POSITION

The Statement of Financial position is a Financial Statement that is usually prepared at the.....

• beginning of the accounting period.

• middle of the accounting period.

• end of the accounting period.

• during the accounting period

When was the Accounting equation introduced to your learners?

• Grade 12

• Grade 8

• Grade 10

• Grade 9

Which one of the list below is an equity account?

• Current assets

• Non-current liability

• Inventory

• Retained income

Identify the explanation of an Interim dividend.

• Dividends paid to the shareholders during the financial year.

• Profits shared amongst the shareholders in proportion to the number of shares held.

• A portion of the profit that has not been paid out to the shareholders in dividends but kept for future growth.

• Dividends declared to the shareholders at the end of the financial year.

Stock is not valued based on the amount of money that would be received

if it is sold in a short period.

Identify the GAAP Principle?

• HISTORICAL COST

• MATCHING

• PRUDENCE

• GOING-CONCERN

Do the calculations of the following adjustment and choose the correct answer?

Amount in Trial balance: Rent income - R86 800

Rent has been received from the tenant two months in advance. The rent agreement commenced on 1 June 2023.

• R11 300

• R12 400

• R14 200

• R12 000

What happens to a fixed deposit amount that is going to mature in 12 months?

• Add to Inventory

• Add to Trade and other receivables

• Add to Cash & cash equivalents

• Add to Retained income

What are the reasons for companies to buy-back their shares?

• When the company wants to use all the cash available in the business.

• To weaken the value of shares available.

• When company’s shares are trading at lower price comparing to the market value.

• Encourage shareholders who may be looking for controlling stake.

Asset disposed @ Carrying value is equal to ........

• Cost price LESS Acc

  Depreciation

• Cost price at beginning

  PLUS additions

• Cost price at beginning

  LESS Cost price of asset disposed

• Cost Price LESS

  Accumulated

  depreciation

The interest on the fixed deposit was R112 500 for the financial year ended 28 February 2023.

The fixed deposit was invested on 1 June 2022 at Ivory Bank at 12,5% interest p.a.

Interest is not capitalised.

DETERMINE THE FIXED DEPOSIT AMOUNT......

• R2 100 000

• R1 200 000

• R1 210 000

• R2 120 000