M1 OAE Correction

    Q1-1: Stewardship is an important concept because of:

    Question options:

       

    The   separation of ownership from management

      

    The need   to increase shareholder wealth

      

    The   importance of the quality of decisions by small business owners

      

    The need to recognize the importance of   all stakeholders

    Q1-3: Financial statements are regulated by:

    Question options:

       

    Legislation and accounting standards

      

    Accounting   standards and audit

      

    Legislation,   accounting standards and audit

      

    The   accounting profession

     

    Q3-1a: The Income Statement comprises the following groups of accounts:

    Question options:

       

    Assets   and Liabilities

      

    Income, Expenses and Equity

      

    Assets,   Liabilities and Equity

      

    Income   and Expenses

     

    Q3-3: Paying cash for a computer system for business use would affect the following types of account:

    Question options:

       

    Both   assets and liabilities

      

    Liabilities   only

      

    Assets   only

      

    Both assets and expenses

     

    Q3-4 to Q3-8: Use the following information to answer Questions 3-4 to 3-8 (12-16). Kochyo purchases an inventory of spare parts on credit from its suppliers for $15,000. During the month Kochyo pays its suppliers $10,000 and sells spare parts (which cost the business $8,000) to its customers on credit for $20,000. Customers pay Kochyo $12,000 during the month.
     

    Q3-7: Profit increases by:

    Question options:

       

    $7,000

      

    $8,000

      

    $12,000

      

    $5,000

      

    $2,000

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