1. Firms have control systems to:

I protect their assets
II reduce accounting errors
III improve the reliability of financial information

2. In an accounting process, there are common tools that a firm can use in its control systems. Which of the following systems locate subsidiary ledgers errors?

3. Salim posted goods purchased from Bernard in Justin's account. What kind of error is this?

4. Zari forgot to record a cheque payment of $5 000 for goods sold to a customer. What kind of error is this?

5. Riaz Chamberlain overlooked an invoice from a supplier, Shemuel Gowrie. What type of error is this?

6. A cheque for $750 paid for interest charges was posted to the accounts in error for $705. What type of error is this?

Item 7 refers to the following information.

7. The balance as per bank statement is

8. A firm's cash book showed a bank balance of $3 000. The bank statement showed bank charges of $50 and $80 for interest received. These amounts were not entered in the firm's cash book. What was the adjusted cash book balance?

9. Oscar is a sole trader who is considering forming a partnership with Gloria. Which of the following is NOT an advantage of forming this type of business?

10. Maxwell and Thomas are two sole traders seeking to form a partnership. Which of the following are benefits of forming a partnership?

I Sharing of responsibilities
II Sharing of risks
III Increased capital

11. What is the formal written agreement when a partnership is established known as?

12. In the absence of a partnership agreement, profits are shared