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Question 68 On 31 May 2020 Creature Comforts Ltd purchases gas heaters from their supplier and agrees to pay for them within 45 days. Assuming the amount is still owing at 30 June 2020, the balance sheet of Creature Comforts Ltd will report the amount owing as: Select one: O a. cash at bank. O b. accounts payable. O C. accounts receivable. O d. debtors. Question 106 A party to whom the entity owes money for the provision of goods or services is called a: O a. debtor. O b. creditor. Oc.client. O d. customer. Question 35 According to the Conceptual Framework information that is free from material error and bias has greater: Select one: a. Faithful representation. O b. Decision making usefulness. O c. Relevance. O d. Verifiability. Question 10 Which statement concerning accrual accounting is true? Select one: a. Income is recognised in the period when the flow of economic benefits can be reliably measured. O b. Profit is the excess of cash inflows from income over cash outflows for expenses. O c. For most businesses the cash approach gives a better measure of economic performance than does the accrual approach. O d. Income from sales is recognised in the period when the cheque is cashed. Question 112 Which of the following statements is correct? O a. The normal balance for equity is a credit. O b. The normal balance for a liability is a debit. O c The normal balance for income is a debit. O d. The normal balance for an asset is a credit

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