4.1 Choose a term in COLUMN B that matches an explanation in COLUMN A - NSC Accounting - Question 4 - 2019 - Paper 1
Question 4
4.1 Choose a term in COLUMN B that matches an explanation in COLUMN A. Write only the letters (A–E) next to the question numbers (4.1.1 to 4.1.4) in the ANSWER BOOK.... show full transcript
Worked Solution & Example Answer:4.1 Choose a term in COLUMN B that matches an explanation in COLUMN A - NSC Accounting - Question 4 - 2019 - Paper 1
Step 1
4.1.1 Reflects the financial position of the business on a specific date
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Answer
C
Step 2
4.1.2 Shows whether the business made a profit or loss
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Answer
D
Step 3
4.1.3 Provides details about the movement of money with regard to operating, investing, and financing activities
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Answer
B
Step 4
4.1.4 Provides an unbiased opinion on the reliability of the financial statements of a business
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Answer
A
Step 5
4.2.1 Give ONE reason why the Companies Act requires public companies to be audited by an independent auditor
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Answer
An independent audit provides assurance that the financial statements are free from material misstatement, enhancing credibility for stakeholders.
Step 6
4.2.2 Give ONE reason why the Companies Act requires public companies to be audited by an independent auditor
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Answer
It ensures transparency in financial reporting and helps protect the interests of shareholders.
Step 7
4.2.3 Explain how this may influence shareholders of Everest Ltd. State TWO points.
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Answer
Shareholders may lose trust in the financial reporting of Everest Ltd, leading to decreased confidence in electing the board of directors.
There may be concerns regarding share price fluctuations due to perceived risks associated with the company's financial integrity.
Step 8
4.3.1 Complete the Statement of Comprehensive Income (Income Statement) for the year ended 31 March 2019.
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Operating profit: Gross profit - Operating expenses (add specific expenses from the provided information)
Net profit before tax: Adjust for interest income and interest expenses.
Net profit after tax: Calculate based on applicable tax rate.
Step 9
4.3.2 Complete the following notes to the Balance Sheet: Fixed/Tangible Asset Note
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Answer
Calculate carrying value, accumulated depreciation, and other adjustments based on provided information. For example:
Vehicles: Determine cost, accumulated depreciation, and book value.
Equipment: Account for sale and remaining depreciation.
Step 10
4.3.2 Complete the following notes to the Balance Sheet: Ordinary share capital
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Answer
Calculate ordinary share capital issued, bought back, and outstanding shares based on the provided figures, adjusting for any issues during the financial year.
