Indicate by choosing the correct option whether the following statement is true or false:
1)Expenditure accounts will be credited at the end of the financial year with the narration, "Profit or loss account."
A. True
B. False
2)The profit or loss account are closed off to the statement of profit or loss and other comprehensive income for a financial year.
A. True
B. False
3)One of the steps to calculate purchases if no distinction can be made between cash and credit purchases, if you want to convert a single-entry system into a double entry system where minimal records are kept, is to calculate the amounts with the aid of the trade payables control account.
A. True
B. False
4)One of the steps to calculate purchases if no distinction can be made between cash and credit purchases, if you want to convert a single-entry system into a double entry system where minimal records are kept, is to calculate the amounts with the aid of the trade receivables control account.
A. True
B. False
5)The entries in the adjustment journal always affects the trading account or profit or loss account as well as a statement of financial position account.
A. True
B. False
6)The property, plant and equipment note will provide more information such as depreciation rates used for vehicles and equipment as this information is not presented on the face of the statement of position.
A. True
B. False
