FA - (New Mock)

Which of the following statements best defines a statement of financial position?

• It is a summary of income and expenditure for an accounting period

• It is a summary of cash receipts and payments made during an accounting period

• It is a summary of assets, liabilities and equity at a specified date

• It is a summary of assets and expenses at a specified date

What is the main purpose of financial accounting?

• To record all transactions in the books of account

• To provide management with detailed analyses of costs

• To enable preparation of financial statements that provides information about an entity's financial performance and position

• To calculate profit or loss for an accounting period

Which of the following statements best explains the principle of faithful representation in

relation to the preparation of the annual financial statements?

• Transactions are presented any way that is considered appropriate.

• Transactions are presented in such a way as to maximise profit for the year.

• Transactions are presented in such a way to maximise asset values in the statement of

  financial position.

• Transactions are presented to reflect their commercial substance of a transaction

  rather than their legal form.

Which of the following pairs of items would appear on the same side of the trial balance?

• Drawings and accruals

• Carriage outwards and prepayments

• Carriage inwards and rental income

• Opening inventory and purchase returns

Which of the following statements best describes the purpose of a purchase order?

• It is issued to a supplier to request supply of goods from them on terms specified within

  the order.

• It is issued to a customer to confirm the supply of goods to them on terms specified in

  the order.

• It is issued to a supplier as notification of payment.

• It confirms the price that will be charged by a supplier for goods supplied.

Which of the following statements best describes the purpose of a goods despatched note

(delivery note)?

• It is issued by a customer returning faulty goods to their supplier.

• It is issued by a customer to their supplier and specifies the quantity and type of goods

  they require to be despatched.

• It is issued by a supplier to their customer and specifies the quantity and type of goods

  delivered to that customer.

• It is issued by a supplier to their customer and specifies what goods will be provided

  to them at a specified future date.

Which of the following might explain a debit balance on a payables ledger account?

• The business took a settlement discount to which it was not entitled and paid less than

  the amount due

• The business mistakenly paid an invoice twice

• The book-keeper failed to enter a contra with the receivables ledger

• The book-keeper failed to post a cheque paid to the account

In which book of prime entry would a business record the part-exchange value received for

a vehicle traded in when purchasing a new vehicle?

• The sales daybook

• The cash payments book

• The journal

• The non-current asset register

A business sold goods that had a net value of $600 to Lahari.

What entries are required by the seller to record this transaction if sales tax is applied at

17.5%?

• Dr Lahari$600, Dr sales tax $105, cr sales $705

• Dr Lahari $705, Cr Sales tax $105, Cr Sales $600

• Dr Lahari $600, cr sales tax $105, cr sales $600

• Dr sales $600, Dr sales tax $105, cr Lahari $705

Which of the following statements is correct?

• Carriage inwards and carriage outwards are both accounted for as an expense in the

  statement of profit or loss.

• Carriage inwards and carriage outwards are both accounted for as income in the

  statement of profit or loss.

• Carriage inwards is treated as an expense and carriage outwards is treated as income

  in the statement of profit or loss.

• Carriage inwards is treated as income and carriage outwards is treated as an expense

  in the statement of profit or loss.