3.1 CONCEPTS
Choose the correct term to complete each of the following statements - NSC Accounting - Question 3 - 2016 - Paper 1
Question 3
3.1 CONCEPTS
Choose the correct term to complete each of the following statements. Write only the term next to the question number (3.1.1–3.1.4) in the ANSWER BOOK.
... show full transcript
Worked Solution & Example Answer:3.1 CONCEPTS
Choose the correct term to complete each of the following statements - NSC Accounting - Question 3 - 2016 - Paper 1
Step 1
3.1.1 Interest on a bank overdraft is a/an …
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Expense
Step 2
3.1.2 Consumable stores on hand are a/an …
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Current asset
Step 3
3.1.3 The portion of a loan to be paid during the next financial year is regarded as a/an … in the Balance Sheet.
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Current liabilities
Step 4
3.1.4 The difference between current assets and current liabilities is known as …
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Net working capital
Step 5
3.2.1 To whom is the audit report addressed?
97%
117 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The audit report is addressed to the Shareholders.
Step 6
3.2.2 Who has to ensure that the financial statements are prepared and presented at the annual general meeting?
97%
121 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
It is the responsibility of the Directors, Management, CEO, or CFO to ensure that the financial statements are prepared and presented.
Step 7
3.2.3 Choose the correct word from those in brackets. Write the answer next to the question number (3.2.3) and explain your choice.
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Fralezi Ltd received an unqualified audit report. This indicates that the financial statements present a fair view of the company’s status without any significant shortcomings.
Step 8
3.2.4 Explain why the independent auditors referred to pages 11–29 in the report.
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The auditors referred to pages 11–29 because those sections contained the financial statements that were examined in detail. They are responsible for ensuring that all parts of the report are accurate and adhere to the relevant standards.
