The financial accounts, as prepared by the directors of a company, are required to show a 'true and fair view'.
This means that:

• A.The accounts are accurate
• B.The accounts contain no fraudulent transactions
• C.The accounts are prepared in accordance with the Companies Act and comply with relevant reporting standards
• D.No errors were detected during the audit of the accounts

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Refer to the Exhibit.

Double entry forms the basis of financial accounting records.
Which of the following combinations is correct?

• A.B
• B.D
• C.A
• D.C

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The double entry system underpins all accounting records
Which of the following combinations represent debit balances?

• A.Receivables, accruals, share capital & expenses
• B.Bad debts, property, plant & equipment, accruals & receivables
• C.Drawings, prepayments, receivables & bad debts
• D.Property, plant & equipment, research & development, bank overdraft & expenses

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Which one of the following would not be considered a purpose of segregation of duty?

• A.Avoiding opportunities for diverting money from the company.
• B.Preventing fraudulent manipulation of the bookkeeping system.
• C.Ensuring staff get experience of a variety of different tasks.
• D.Ensuring no one person should have complete control over any section of the bookkeeping system.

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A company has receivables of $60,000, which represents 60 payables days, and payables of $45,000, which represents 45 payables days.
What would be the effect on cash, if receivable days and payables days were reduced to 55 days and 40 days respectively?

• A.An increase of $5,000
• B.No effect
• C.An increase of $10,000
• D.A reduction of $10,000

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