Accounting Quiz

Match the fundamental ethical principle to the characteristic.

(1) Integrity
(2) Objectivity
A Members should be straightforward and honest in all professional and business relationships.

B Members should not allow bias, conflict or interest or undue influence of others to override
professional or business judgements.

• (1)-A; (2)-(B)

• (1)-B; (2)-(A)

The ICAEW Code of Ethics only applies to the paid activities of the professional accountant.

• True

• False

Which two of the following are assets of an entity?

• Trade payables

• Trade receivables

• Bank overdraft

• Cash in hand

• Funds introduced by the owner

Petty cash is controlled under an imprest system. The imprest amount is £100. During a period, payments totalling £53 have been made. How much needs to be reimbursed at the end of the period to restore petty cash to the imprest account?

• £100

  
  

• £53

  
  

• £47

  
  

• £50

  
  

In applying fundamental accounting concepts, the preparers of financial information are also using:

• Legislation

• Accounting standards

• Judgement

• Financial reporting standards

Sales orders are source documents that are recorded in the accounting system. Is this statement true or false?

• True

• False

Which of the following is classified as revenue expenditure?

• Purchase of inventories for resale

• Purchase of a motor vehicle to deliver goods to customers

• Purchase of machinery for use in production

• Purchase of a warehouse to store inventory

Materiality is an entity-specific aspect of which qualitative characteristic?

• Relevance

• Understandability

• Faithful representation

• Comparability

Liability for the debts of the business does not fall on:

• A sole trader

• Partners in a general partnership

• A limited liability company

• Owners of a limited liability company

Which of the following are source documents for credit purchases?

• Suppliers’ invoices and credit notes

• Invoices and credit notes to customer

• Delivery notes

• Goods received notes