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5. A lorry was bought for a business cost of 17,000. It is expected to last for five years and then be sold for scrap for 2,000. Work out the depreciation to be charged in Year 5 using the straight-line method. a) 2,000 b) 3,400 c) 3,000 d) 3,800 6. Which one of the following is false? a. The assets of a company are financed by equity. b. The assets of a company are financed by equity and liabilities. c. The assets of a company are financed by equity and long-term liabilities. d. The assets of a company are financed by fixed assets and current assets. 7. Which one of the following is not an element of the final accounts? a. Trial balance b. Profit and loss account C. Balance sheet d. Cash flow statement 8. Which one of the following would you not see in a trial balance? a. Cash b. Wages and salaries C. Drawings d. Staff value 9. PQR sales revenue for the period was 480,000. The debtors account for last year was 40,000. The balance sheet for this year shows a balance of 60,000. What is the cash receipt from customers during the current accounting year? a. 460,000 b. 380,000 C. 520,000 d. 580,000 10. 8. PQR purchases figure for the period was 560,000. The creditors account for last year was 160,000. The balance sheet for this year shows that this has increased to 200,000. What is the cash paid for inventories during the current accounting year? a. 920,000 b. 200,000 C. 520,000 d. 260,000

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