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Question 1: When Loise makes out a cheque for N$5000 and sends it to Young, then Loise is known as
a) The payee
b) The banker
c) The drawer
d) The creditor
Question 2: What should happen if the balance on the Suspense account is of material amount?
a) Show it in the Statement of Financial Position
b) Carry forward the balance to the next period
c) Find the errors before publishing the financial statements
d) Write it off to the Statement of Comprehensive Income
Question 3: Goods sold to Annelie of N$430 was entered in both accounts as N$520. The rectification entry will be:
a) Debit: Annelie N$520
Credit: Sales N$520
b) Debit: Sales N$90
Credit: Annelie N$90
c) Debit: Sales N$560
Credit: Annelie N$560
d) Debit: Annelie N$90
Credit: Sales N$90
Financial Statement Analysis and Preparation
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