FAC1503 Assignment 5 (QUIZ) Semester 1 Test Questions
And Answers Verified 100% Correct
Question 1 of 39
3.0 Points
Click to see additional instructions
On 20 December 2020, the account of SA Stationers, a creditor of SA Business, was paid with
an electronic funds transfer to the amount of R1 800. SA Business makes use of the perpetual
inventory system and is not a registered VAT vendor. NB:
1. Do not type the amount with any spaces as separators for thousands (eg: 12141,72).
2. Do not indicate any cents.
3. You must enter an amount in each of the open spaces. If the transaction does not have any
effect on a certain aspect of the account equation, please indicate it with a zero (eg: 0).
The effect of this transaction on the accounting equation will be:
Asset s Equit y Liabilities
+ + +
- 1800 - 1800
Question 2 of 39
1.0 Points
Persons registering as vendors should bear in mind the duties associated with being a vendor.
One of these tasks is the issuing of tax invoices within 21 days from the time the supply was
made.
True
False
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Question 3 of 39
1.0 Points
,Vendors may claim an input tax deduction in respect of goods or services acquired in the course
or furtherance of making exempt supplies.
True
False
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Question 4 of 39
1.0 Points
As from 8 January 2016 the name, address and VAT registration number of the supplier must be
reflected on a tax invoice where the consideration (price) exceeds R5 000 for it to be considered
valid.
True
False
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Question 5 of 39
1.0 Points
The sale of an entity (or part thereof) as a going concern is an exempt supply for VAT purposes.
True
False
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Question 6 of 39
1.0 Points
The rules for the Attorneys’ Profession does not require that the accounting records of a legal
practice (including the bank reconciliation statement) be updated and balanced on a monthly
basis.
True
False
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Question 7 of 39
1.0 Points
, The business captured a deposit made into the business bank account as R4 500 instead of R5
400. The amount reflects correctly on the bank statement. While preparing the bank
reconciliation statement the business must make an entry in the cash payments journal.
True
False
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Question 8 of 39
1.0 Points
Direct deposits made by clients and third parties into the bank account of the business during
the statement period will always reflect immediately on the bank statement and will thus not be a
one reason why the bank account balance in the general ledger and the bank balance as per
the bank statement could differ.
True
False
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Question 9 of 39
1.0 Points
An advantage of applying the straight-line method of depreciation is the fact that it matches cost
with revenue by providing higher depreciation on new assets and the cost is reduced as the
efficiency of the asset declines.
True
False
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Question 10 of 39
1.0 Points
A disadvantage of applying the straight-line method of depreciation is the fact that it ignores the
possible decline in efficiency of the asset over time.
True
False
Reset Selection
And Answers Verified 100% Correct
Question 1 of 39
3.0 Points
Click to see additional instructions
On 20 December 2020, the account of SA Stationers, a creditor of SA Business, was paid with
an electronic funds transfer to the amount of R1 800. SA Business makes use of the perpetual
inventory system and is not a registered VAT vendor. NB:
1. Do not type the amount with any spaces as separators for thousands (eg: 12141,72).
2. Do not indicate any cents.
3. You must enter an amount in each of the open spaces. If the transaction does not have any
effect on a certain aspect of the account equation, please indicate it with a zero (eg: 0).
The effect of this transaction on the accounting equation will be:
Asset s Equit y Liabilities
+ + +
- 1800 - 1800
Question 2 of 39
1.0 Points
Persons registering as vendors should bear in mind the duties associated with being a vendor.
One of these tasks is the issuing of tax invoices within 21 days from the time the supply was
made.
True
False
Reset Selection
Question 3 of 39
1.0 Points
,Vendors may claim an input tax deduction in respect of goods or services acquired in the course
or furtherance of making exempt supplies.
True
False
Reset Selection
Question 4 of 39
1.0 Points
As from 8 January 2016 the name, address and VAT registration number of the supplier must be
reflected on a tax invoice where the consideration (price) exceeds R5 000 for it to be considered
valid.
True
False
Reset Selection
Question 5 of 39
1.0 Points
The sale of an entity (or part thereof) as a going concern is an exempt supply for VAT purposes.
True
False
Reset Selection
Question 6 of 39
1.0 Points
The rules for the Attorneys’ Profession does not require that the accounting records of a legal
practice (including the bank reconciliation statement) be updated and balanced on a monthly
basis.
True
False
Reset Selection
Question 7 of 39
1.0 Points
, The business captured a deposit made into the business bank account as R4 500 instead of R5
400. The amount reflects correctly on the bank statement. While preparing the bank
reconciliation statement the business must make an entry in the cash payments journal.
True
False
Reset Selection
Question 8 of 39
1.0 Points
Direct deposits made by clients and third parties into the bank account of the business during
the statement period will always reflect immediately on the bank statement and will thus not be a
one reason why the bank account balance in the general ledger and the bank balance as per
the bank statement could differ.
True
False
Reset Selection
Question 9 of 39
1.0 Points
An advantage of applying the straight-line method of depreciation is the fact that it matches cost
with revenue by providing higher depreciation on new assets and the cost is reduced as the
efficiency of the asset declines.
True
False
Reset Selection
Question 10 of 39
1.0 Points
A disadvantage of applying the straight-line method of depreciation is the fact that it ignores the
possible decline in efficiency of the asset over time.
True
False
Reset Selection
