NSC Accounting Concepts relating to companies: 1.1 Complete each of the followi

Question

1.1 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 ANSWER BOOK.

external auditors; directors; shareholders; internal auditors

1.1.1 The ... are employed by the company to set up and monitor control processes.

1.1.2 ... are appointed to give an unbiased opinion on the financial statements.

1.1.3 ... are appointed by the owners of the company to perform key management functions.

(3 x 1)

1.2 PRUDENCE LTD

D. The following adjustments are relevant to complete the Statement of Financial Position:

- The provision for bad debts must be increased by R2 610.
- Only half the audit fees were paid. The balance will be paid in March 2022.
- The tenant occupies part of the premises from 1 May 2021. He has not paid the rent for January and February 2022.

E. R240 000 of the fixed deposit will mature on 1 April 2022.

F. A debit balance of R17 950 from the Debtors' Ledger must be transferred to the Creditors' Ledger.

G. The following financial indicators were calculated on 28 February 2022, after all adjustments were processed:

Current ratio 1.6 : 1
Debt-equity ratio 0.4 : 1

H. The loan from XY Loans will be reduced by a capital portion of R228 000 in the 2023 financial year.

1.1 Complete each of the following statements by choosing a word(s) from the list below - NSC Accounting - Question 1 - 2022 - Paper 1

Worked Solution & Example Answer:1.1 Complete each of the following statements by choosing a word(s) from the list below - NSC Accounting - Question 1 - 2022 - Paper 1

1.1.1 The ... are employed by the company to set up and monitor control processes.

1.1.2 ... are appointed to give an unbiased opinion on the financial statements.

1.1.3 ... are appointed by the owners of the company to perform key management functions.

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