1.1 Which of the following statements regarding The Statement ofFinancial Position is true? A The Statement ofFinancial Position reflects the financial position of an enterprisefor the entire financial period being reported. BThe Statement of Financial Position reflects the financial positionof an enterprise only on a specific date C TheStatement of Financial Position is a measure of the profit or lossthat the enterprise has made over a certain period, usually oneyear D The Statement of Financial Position doesnot take into account transactions in respect of the owners of theenterprise

1.2 Which of the following statements regarding Equity is false?A Equity is the interest of the owner(s) in the net assets of theenterprise B The Equity of an enterprise is affected by the capitalcontribution and drawings made by the owner C Equity is affected bychanges in income and expense accounts D None of the above (1)

1.3 The monetary columns of an account in the General Ledger areadded vertically. This is known as A Summing B Balancing C CastingD Posting (1) 2 JS15

1.4 Which of the following errors will not be revealed bybalancing the trial balance? A Inventory to the value of R5 000 wasincorrectly posted to the Furniture and Fittings account B ThePrepaid Expenses account of R 4 500 was incorrectly entered on thecredit side of the trial balance. C The balance on Trade Creditorswas incorrectly calculated to be R 56 000 instead of R 54 000 andentered on the Credit side of the trial balance D The balance ofAccrued expenses account of R 12 000 was omitted in full. (1)

1.5 Which of the following is a IFRS accepted method used todetermine the cost of inventories for financial reporting? ALast–in-Last-Out B Weighted Average C Variable costing D Absorptioncosting