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.
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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 …
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Answer
Expense
Step 2
3.1.2 Consumable stores on hand are a/an …
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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.
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Answer
Current liabilities
Step 4
3.1.4 The difference between current assets and current liabilities is known as …
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Answer
Net working capital
Step 5
3.2.1 To whom is the audit report addressed?
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Answer
Shareholders
Step 6
3.2.2 Who has to ensure that the financial statements are prepared and presented at the annual general meeting?
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Answer
Directors / Management / CEO / CFO
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.
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Answer
Fralezi Ltd received a/an unqualified audit report. This indicates that there were no significant issues noted in the financial statements during the audit, ensuring users can rely on the information presented.
Step 8
3.2.4 Explain why the independent auditors referred to pages 11–29 in the report.
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Answer
The auditors are responsible for ensuring that the financial statements present fairly and adhere to relevant regulations. The specific pages (11–29) were subject to audit examination to confirm their accuracy and compliance.
