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A set of accounting questions including multiple choice, short answer, and a balance sheet calculation problem.

Accounting

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SECTION A: MULTIPLE CHOICE

  1. The balance sheet shows the financial position of a business at a given point in time.

    • A) True
  2. Which of the following is an example of a non-current asset?

    • C) Buildings
  3. The basic accounting equation is:

    • B) Assets = Liabilities + Owners' Equity
  4. Which of the following is an example of a current liability?

    • D) Accounts Payable

SECTION B: SHORT ANSWER QUESTIONS

  1. A current liability is an obligation that a business expects to settle within one year.

    • Example: Accounts Payable (money owed to suppliers).
  2. Owner's capital or owner's equity is the amount of money or assets the owner has invested in the business, plus any accumulated profits that have been retained in the business.

SECTION C: BALANCE SHEET

  1. Calculate the missing figures (A, B, C, D, E, F, G).

    • A (Total Current Assets): A=Cash at Bank+DebtorsA = \text{Cash at Bank} + \text{Debtors} A=R12,400+R8,000=R20,400A = \text{R}12,400 + \text{R}8,000 = \text{R}20,400
    • B (Total Non-Current Assets): B=Equipment+VehiclesB = \text{Equipment} + \text{Vehicles} B=R11,700+R15,000=R26,700B = \text{R}11,700 + \text{R}15,000 = \text{R}26,700
    • C (TOTAL ASSETS): C=Total Current Assets+Total Non-Current AssetsC = \text{Total Current Assets} + \text{Total Non-Current Assets} C=R20,400+R26,700=R47,100C = \text{R}20,400 + \text{R}26,700 = \text{R}47,100
    • D (Total Current Liabilities): D=Creditors+Bank OverdraftD = \text{Creditors} + \text{Bank Overdraft} D=R1,400+R1,000=R2,400D = \text{R}1,400 + \text{R}1,000 = \text{R}2,400
    • E (Total Non-Current Liabilities): E=Bank Loan=R15,000E = \text{Bank Loan} = \text{R}15,000
    • F (Total Owners' Equity): F=Capital=R17,200F = \text{Capital} = \text{R}17,200
    • G (TOTAL LIABILITIES AND OWNERS' EQUITY): G=Total Current Liabilities+Total Non-Current Liabilities+Total Owners’ EquityG = \text{Total Current Liabilities} + \text{Total Non-Current Liabilities} + \text{Total Owners' Equity} G=R2,400+R15,000+R17,200=R34,600G = \text{R}2,400 + \text{R}15,000 + \text{R}17,200 = \text{R}34,600
  2. Answer the questions based on the calculated figures.

    1. The missing figures are:

      • A: R20,400\boxed{\text{R}20,400}
      • B: R26,700\boxed{\text{R}26,700}
      • C: R47,100\boxed{\text{R}47,100}
      • D: R2,400\boxed{\text{R}2,400}
      • E: R15,000\boxed{\text{R}15,000}
      • F: R17,200\boxed{\text{R}17,200}
      • G: R34,600\boxed{\text{R}34,600}
    2. The total current assets are: R20,400\boxed{\text{R}20,400}

    3. The total non-current assets are: R26,700\boxed{\text{R}26,700}

    4. The total assets are: R47,100\boxed{\text{R}47,100}

    5. The total current liabilities are: R2,400\boxed{\text{R}2,400}

    6. The total non-current liabilities are: R15,000\boxed{\text{R}15,000}

    7. The total of Total Liabilities and Owners' Equity is: R34,600\boxed{\text{R}34,600}

    8. The total owner's equity is: R17,200\boxed{\text{R}17,200}

    SECTION D: INCOME STATEMENT

  3. Calculate Gross Profit.

    Gross Profit=Sales−Cost of Sales\text{Gross Profit} = \text{Sales} - \text{Cost of Sales} Gross Profit=R20,000−R12,000=R8,000\text{Gross Profit} = \text{R}20,000 - \text{R}12,000 = \text{R}8,000
  4. Calculate Total Expenses.

    Total Expenses=Wages+Stationery+Rent+Water/Light+Loan Interest\text{Total Expenses} = \text{Wages} + \text{Stationery} + \text{Rent} + \text{Water/Light} + \text{Loan Interest} Total Expenses=R700+R300+R700+R300+R100=R2,100\text{Total Expenses} = \text{R}700 + \text{R}300 + \text{R}700 + \text{R}300 + \text{R}100 = \text{R}2,100
  5. Calculate Net Profit.

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