In each of the following questions only write down the letter that represents the correct answer. Forinstance, if you think that the correct answer for number 1 is A, then write it as 1. A.The following details refer to questions 1-3:During the month of May 2019, Veni a sole trader purchased goods to the value of N$6 000, ofwhich one fourth was sold for N$4 500 during May. In addition, rental and insurance for the monthamounted to N$1 000 and N$1 500 were incurred, respectively.1. The total costs to be taken into account when you prepare statement of profit or loss forMay 2019 should be:A. N$4 000B. N$4500C. N$1500D. N$3 0002. The gross profit for May was:A. N$4 000B. N$4500C. N$1500D. N$3 0003. The net profit for May wasA. N$3 000B. N$2 000C. N$1 500D. N$500The following details refer to questions 4-5:The following information relates to the 2018/2019 financial year of Tura Car:N$400 000250 00090 00060 00020 000SalesPurchasesInventory on hand at 1 May 2018Inventory on hand at 30 April 2019Carriage inwards4. The cost of sales for the ended 30 April 2019 was:A. N$320 000B. N$310 000C. N$300 000D. N$330 000 5. The gross profit percentage on sales for the year ended 30 April was:6.Which one of the following statements is correct?A. A trial balance is always extracted for a certain period.B. Income items decrease equity whereas cost items increase equity.C. A debit entry on an expense account decreases the expense account.D. Payments made for services not yet rendered are classified as assets.A. 33%B. 25%C. 28%D. 30%7. Which principle dictates that assets should be recorded in the accounts at the value theywere purchased.8. Goods bought on credit with intention of resale are recorded in:A. Sales journal.B. Purchases journal.C.Sales returns journal.D. Purchases returns journal.A. PrudenceB. Matching principle.C. Historical cost principle.D. Periodicity principle.9. Credit purchases of delivery vehicle is recorded in:A. Purchases JournalB. Sales JournalC. General JournalD. Purchases Return JournalAB10. Which of the following statements BEST describes a limited liability company?It is normally a non-profit making organizationIt is normally owned by just one personIn law it is regarded as having a separate existence from its ownersIt is normally owned and managed by the same personsсD

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Description: In each of the following questions only write down the letter that represents the correct answer. Forinstance, if you think that the correct answer for number 1 is A, then write it as 1. A.The following details refer to questions 1-3:During the mont

1. Total cost = Cost of goods sold + Rental expense + Insurance expense Cost of goods sold =…

Business

Accounting

In each of the following questions only write down the letter that represents the correct answer. For instance, if you think that the correct answer for number 1 is A, then write it as 1. A. The following details refer to questions 1-3: During the month of May 2019, Veni a sole trader purchased goods to the value of N$6 000, of which one fourth was sold for N$4 500 during May. In addition, rental and insurance for the month amounted to N$1 000 and N$1 500 were incurred, respectively. 1. The total costs to be taken into account when you prepare statement of profit or loss for May 2019 should be: A. N$4 000 B. N$4500 C. N$1500 D. N$3 000 2. The gross profit for May was: A. N$4 000 B. N$4500 C. N$1500 D. N$3 000 3. The net profit for May was A. N$3 000 B. N$2 000 C. N$1500 D. N$500

In each of the following questions only write down the letter that represents the correct answer. For instance, if you think that the correct answer for number 1 is A, then write it as 1. A. The following details refer to questions 1-3: During the month of May 2019, Veni a sole trader purchased goods to the value of N$6 000, of which one fourth was sold for N$4 500 during May. In addition, rental and insurance for the month amounted to N$1 000 and N$1 500 were incurred, respectively. 1. The total costs to be taken into account when you prepare statement of profit or loss for May 2019 should be: A. N$4 000 B. N$4500 C. N$1500 D. N$3 000 2. The gross profit for May was: A. N$4 000 B. N$4500 C. N$1500 D. N$3 000 3. The net profit for May was A. N$3 000 B. N$2 000 C. N$1500 D. N$500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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