4.1     The balances of the following account(s) in the general ledger of a partnership will contribute to the balance of the total equity section of the statement of financial position. A        Capital accounts B        Current accounts C        Reserve accounts D        All of the above   4.2     An accrued expense of R500 was recorded as a prepaid expense during the adjustment process. The effect of the error would have caused the________. A        Gross profit to be understated by R500 B        Gross profit to be overstated by R500 C        Net profit to be understated by R1000 D        Net profit to be overstated by R1000   4.3     Which of the following will constitute a line item in a close corporation’s statement of members’ net investment? A        Member’s contributions B        Revaluation surplus / reserve C        Loans from members D        Current accounts       4.4     Which of the following accounts will never be listed in the post-closing trial balance of a close corporation? A        SARS (Income Tax) B        Accrued expenses C        Sales D        Distributions paid to members   4.5     Examples of businesses that trade in the informal sector in South Africa include_______. A        street vendors B        car guards C        flea markets. D        All of the above.   4.6     Which of the following equations is true? A        Owner’s equity = current assets – current liabilities B        Gross profit = total income – total expenses C        Capital + Net profit – drawings = total assets – total liabilities D        Sales – cost of sales = net profit

Good day p,ease help me with this activity from my textbook

ICE ACTIVITY 4

Choose the most appropriate alternative from the options provided for each of the following questions.

Write down ONLY the letter of your choice next to the corresponding number

(e.g. 4.27  =  B).

Note: where applicable, assume a VAT rate of 15%.

4.1     The balances of the following account(s) in the general ledger of a partnership will contribute to the balance of the total equity section of the statement of financial position.

A        Capital accounts

B        Current accounts

C        Reserve accounts

D        All of the above

4.2     An accrued expense of R500 was recorded as a prepaid expense during the adjustment process. The effect of the error would have caused the________.

A        Gross profit to be understated by R500

B        Gross profit to be overstated by R500

C        Net profit to be understated by R1000

D        Net profit to be overstated by R1000

4.3     Which of the following will constitute a line item in a close corporation’s statement of members’ net investment?

A        Member’s contributions

B        Revaluation surplus / reserve

C        Loans from members

D        Current accounts

4.4     Which of the following accounts will never be listed in the post-closing trial balance of a close corporation?

A        SARS (Income Tax)

B        Accrued expenses

C        Sales

D        Distributions paid to members

4.5     Examples of businesses that trade in the informal sector in South Africa include_______.

A        street vendors

B        car guards

C        flea markets.

D        All of the above.

4.6     Which of the following equations is true?

A        Owner’s equity = current assets – current liabilities

B        Gross profit = total income – total expenses

C        Capital + Net profit – drawings = total assets – total liabilities

D        Sales – cost of sales = net profit