2020 BGSS 3E POA EOY P1 Q1

2020 BGSS 3E POA EOY P1 Q1

1 Cherry wants to set up a grocery store and requires an explanation of the following financial terms.

REQUIRED

a. Explain the following terms:

[3]

i. Assets

ii. Liabilities

iii. Stakeholders

b. State one decision that the following stakeholders made using the accounting financial information provided by the business. The first stakeholder has been completed as an example.

[3]

 

Stakeholder

Decision

E.g.

Government 

Decide how much tax to be collected from the business.

(i) 

Managers

 

(ii)

Suppliers

 

(iii)

Employees

 

During the year, Cherry made the following transactions.

2020

 

March 10

Cherry contributed $50 000 cash into the business bank account and a personal laptop worth $3 000 to her business.

June 15

Cherry withdrew inventory costing $400 for a private party at her new home. 

REQUIRED

c. Prepare the journal entries for the above transactions.

[5]

[TOTAL 11]

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(i) Assets
Resources that a business owns or controls that are expected to provide future benefits.

 

(ii) Liabilites
Obligations owed by a business to others that are expected to be settled in the future.

 

(iii) Stakeholders
Group of people who will make use of information about the business to make decisions.

 

  

Decision

E.g.

Government 

Decide how much tax to be collected from the business.

(i) 

Managers

Decide ways to improve the performance of the business

(ii)

Suppliers

Decide whether to grant credit to the business

(iii)

Employees

Decide whether to continue working in the business

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