Complete each of the following statements by choosing a word(s) from the list below - NSC Accounting - Question 1 - 2022 - Paper 1
Question 1
Complete each of the following statements by choosing a word(s) from the list below. Write only the word(s) next to the question numbers (1.1.1 to 1.1.3) in the ANSW... show full transcript
Worked Solution & Example Answer:Complete each of the following statements by choosing a word(s) from the list below - NSC Accounting - Question 1 - 2022 - Paper 1
Step 1
1.1.1 The ... are employed by the company to set up and monitor control processes.
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
The internal auditors are employed by the company to set up and monitor control processes.
Step 2
1.1.2 ... are appointed to give an unbiased opinion on the financial statements.
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 external auditors are appointed to give an unbiased opinion on the financial statements.
Step 3
1.1.3 ... are appointed by the owners of the company to perform key management functions.
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
The directors are appointed by the owners of the company to perform key management functions.
Step 4
Adjustments relevant to complete the Statement of Financial Position
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
Adjustments:
The provision for bad debts must be increased by R2,610.
Audit fees: Half of the fees are outstanding and will be paid in March 2022.
Rent: The tenant has not paid the rent for January and February 2022 for the premises occupied since 1 May 2021.
Fixed deposit: R240,000 will mature on 1 April 2022.
Transfer of debit balance: R17,950 must be transferred from the Debtors' Ledger to the Creditors' Ledger.
Step 5
Financial Indicators on 28 February 2022
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
Financial Indicators:
Current ratio is 1.6:1, indicating the company's liquidity position.
Debt-equity ratio is 0.4:1, reflecting the company's financial leverage.
Step 6
Loan reduction
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
The loan from XY Loans will be reduced by a capital portion of R228,000 in the 2023 financial year.
