The special journal for cash receipts relates to the following transactions: Select one: Cash sales amp; Credit sales b. Receipts from debtors amp;...

The special journal for cash receipts relates to the following transactions:

Select one:

a. Cash sales & Credit sales

b. Receipts from debtors & Credit sales

c. Cash sales & Receipts from debtors

d. Cash sales & Cash purchases

In preparing a bank reconciliation statement for a business with a substantial bank balance, the appropriate treatment for monthly service charge appearing on the bank statement, $45, is to:

Select one:

a. add it to the balance as per bank statement

b. deduct it from the balance as per bank statement

c. add it to the balance per company records

d. deduct it from the balance per company records

Which of the following statement is NOT true about an internal control system?

Select one:

a. It encourages compliance with laws

b. It helps management in safeguarding physical assets

c. It provides absolute assurance

d. It can increase the reliability of financial reporting

On 1 January 2011, Y Ltd purchased a new machine for $500 000. The estimated scrap value of the machine is $20 000. The machine is depreciated straight -line over its useful life of 6 years.  On 31 December 2012, Y Ltd sold the machine for $400 000 to a director of the company. The gain or loss on sale is:

Select one:

a. Gain on sale $60 000

b. Loss on sale $100 000

c. Loss on sale $80 000

d. There is no gain or loss