Financial Management NCV Level 2 — Document P1
November 2022 — NCV Level 2 — Financial Management
NCV Level 2
2022
NCV Business
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Q1— Section header —
1.1Various options are given as possible answers to the following que stions. Choose the answer a nd writ only the letter (A D\ next to the question number (1.1.1
1.1.10\n the ANSWER BOOK.
1.1.1A cheque that bears a date that is later than the date on which it is stale post dated
1.1The income of a business, added to its gross profit, represents the turnover net profit
1.1.3is an accounting system where all the transactions are rec orded by hand. Computer
1.1.4The VAT notice of change of tax period in respect of the submission of a return. 202 201
1.1.5An incre ase in th discount. mark
1.1.6current liability long term liability
1.1.7Net profit that is not divided amongst the shareholders, but kept back for investment is called ... retained income. dividends
1.1.8Ex penditures can be either reg ul r or irr egular.
1.1.9The loss of stock which can be due to factors such a s shoplifting is shrinkage. stock loss. obsolete stock.
1.1.10A method where by an amount of money is placed in a petty cash box and added back to its original value when the balance is system of varyi
1.2Indicate whether the following statements are TRUE or FALSE. Choose the answer and write only 'True' or 'False ' ne t to the uestion number (1.2.1
1.2.15\n the ANSWER BOOK.
1.2.1A business with a turnover of less than R300 000 may register voluntarily as a VAT vendor.
1.2.2One of the advantages of electronic equipment is that it can be expensi ve.
1.2.3When you deposit cash into your current account you incur an interest income.
1.2.4inancial year is a thirteen month accounting period.
1.2.5Commission income is a fee received from a range of services of ered by the business that d ecreases the profit of the business.
1.2.6Insurance premiums is the amount that a business has to pay, usually each month, to an insurance company to cover the value of goods that are stolen or damaged.
1.2.7Payee re ers t the fees charged by banks for the services they
1.2.8The VAT 101 form indicates the VAT amount refundable or payable to SARS at the end of the tax period of a business.
1.2.9Money put into the business, usually as a loan, in c ntrast to money earned by th e business is called interest.
1.2.10A machine used in shops for recording sales and storing the money received is called cash register.
1.2.11Debit card: plastic cards, linked to a bank account that allow you to buy goods on credit. 1.
2.12Double entry system: known as the accounting principle, this states that there must be an equal credit entry for every debit entry.
1.2.13The loss of stock through theft, breakage and other factors is called over inco mer
1.2.14printed o rder for the payment of a special sum of money, issued by banks and the post office is called money order.
1.2.15Denomination: the face value of a banknote or coin. (15 1\ 15 [25]25
Q2— Section header —
2.1Choose t he correct word or words from those given in brackets. Write only the word or words next to the question number (2.1.1
2.1.15\in the ANSWER BOOK.
2.1.1All documents of the business should be kept for a period o (three/f ive\ears, according to SAR S regulations.
2.1.2The standard rated items/goods in South Africa are charged VAT at (14%/15%
2.1.3The (balance sheet/trial balance\ is prepared from the totals and balances in the general ledger. .1 .4 A VAT (vendor/hawker\ is a busine ss
2.1.5To calculate inventory (usage/shrinkage\ you need to take into account opening inventory and actual inventory.
2.1.6A bank keeps co ntrol of depo sits and payments of a busin ess and then sends out a (bank/cheque\statement at the end of every month.
2.1.7The cash (payments/receipts\journal contains the information about money received from customers in one book.
2.1.8(Pro fi t forecast/Pr ofit motive\ is an es timate of the future profits of the business.
2.1.9A confirmation/copy that payment has been made by means of a cheque is a (debit note/cheque counterfoil\
2.1.10(Mark up/ ark down\ is a reduction in the p ri ce of a particu
2.1.11The price of a product is regarded as (VAT inclusive/VAT exclusive\f the VAT amount is accounted for on the final amount.
2.1.12VAT category (A/C\ is for VAT vendors who submit retur ns to SARS every month. .1.13 (L iabilities/Owner
2.1.14A book that contains a business' receipts and payments is called (cash book/cash receipts journal\
2.1.15(Working capit al /Start capital\ is the money needed by a business to pay for everyday expenses such as stock and overheads. (15
2.2Choose an item or word from COLUMN B that matches a description in COLUMN A. Write only the letter (A L\next to the ue stion number (2.
2.2.10in the ANSWER BOOK. OLUMN A COLUMN B
2.2.10An example of a zero rated item. Suppliers to whom the business ow es money for goods or services it has pur chased
Q3— Section header —
3.1The balance sheet below appeared in the books of Sandra Williams raders on 30 June 2021. Study it and answer the questions. BALANCE SHEET OF SANDRA WILLIAMS TRADE RS ON 30 JUNE 2021 NOTE
3.1.1Calculate t he value of owner's equity of this business. Show all your calculations. (3\
3.1.2Was a loss or profit generated by the business in the financial year? How much? (2\
3.1.3Calculate the total current assets. (3\
3.1.4Determine the profi t forecast for the year 2022 by adding 12% to the profit of 2021. (3\ 3011012
3.1.5Calculate the interest on the mortgage bond for 2021. The bond was obtained on 1 Sep tember 202 0 at a rate of 15%. (3\
3.1.6Briefly ex pl ain what float is and its us e. (2\
3.2SMALL BUSINESS LENDING DURING COVID 19 Small businesses and farms were hit hard by restrictions that limited their ability to pay operating costs during the COVID 19 crisis. Banks played an important supportiv
3.2.1What are the b enefit of hav ing business bank account? Mention
3.2.2Give THREE details/ types of information found in the bank statement. (3\
3.2.3Differenti ate between st op order and debit order. (4\
3.3Indicat e the corre ct source documen t and its subsidiary journal from the given transactions below: DATE TRANSACTIONS SOURCE DOCUMENT
3.3.203/03/2021 Cash sales o f goods for 500.
3.3.3CRJ 05/03/2021 Bought a new computer for R4 500 by cheque
3.3.506/03/2021 Manase took stationary home for personal use. Internal office memo
3.3.6(6\
3.4A cash flow st atement is a financial statement that provides aggregate d ata regarding al l cash inflows a company receives from its ongoing operations and external investment sources. Give THREE activities of a cash flow statement.
3.5What is the purpose of th income statement? (2\
3.6What elements do you need in order to cal culate the gross profit? Mention TWO elements. (2\ [40] 301101240
Q4— Section header —
4.1Majozi Traders is a business that designs and makes cane chairs. Majozi Traders em ploys one work er who is paid R1 800 in wages per month. The ent of the shop is R1 2
4.1.1Calculate the cost price and the selling price of each cane c hair. (8\
4.1.2The se lling price of a product is affected by the cost of various factors. How can Majozi Traders reduce the price of the
4.2Majozi raders gives a 2% discount on all cash sales. Their cash s ales in June 2021 amount ed to R45 00 0.
4.2.1Calculate the total discount they gave their customer , and the amount after the discount. (4\
4.2.2Give ONE possible reaso n why they are giving a disco unt on cash sales. (2\
4.3Majozi rad ers sold goods of R9 560, wh ich were VAT inclusive, to its customers on 02 October 2021. Calculate the amount of the goods before VAT a
Q5— Section header —
5.1tudy th e cheque for Smith raders by making use of the fo llowing information and answ er the questions.
5.1.1Complete the cheque using the information give n above on the ANSWE R SHEET (attached\ (6\
5.1.2Identify the drawer, draw ee and the payee on the abov e cheque. (3\ (3011012\ 11 Copyright reserved
5.2Smith Traders keep a petty cash journal for small payments and use the imprest system. On 03 May 2021 a cash cheque of R550 was issued to start the petty cash. The following took place in May 2021 PETTY CASH JOURNAL OF
5.3Name THREE ways in which money can be ke pt safe in a business. (3\
5.4When you deposit money in the bank using depos it slip there is important information
6.1The following information is taken from income sta tement of Chisa yama ating ouse for 2021 and 2022. 20
6.1.1Calculate the cos t of sales for 2021 and 2022. 8\
6.1.2Calculate the gross profit for 2021 and 2022. (4\
6.1.3Calculate the net profi t for 2021 and 2022. (4\
6.220
Q5— Section header —
5.1.1.1 MDD BANK 452 215 4240 Buffalo street Lehae
5.2Petty cas h account Date Details Fol. Amount Date Details Fol.
Topics Identified
3
Forms of OwnershipLeadershipBusiness Plan
Mark Allocation
Total150 marks
Sections25 + 25 + 40 + 20 + 20 = 130 marks
Paper information
TitleDocument
SubjectFinancial Management
LevelNCV Level 2
Document typeQuestion paper
Year2022
MonthNovember
Pages12
Downloads2
Examination context
Decade2020s
Years ago4y
SeasonSpring (SH)
Start dayTuesday
Exam periodNovember 2022
Days since exam1,441
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