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FIA FA1 Recording Financial Transactions (Mock 1)
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Questions in this quiz (13)
1Which of the following is the accounting equation?
- AAssets + Liabilities = Capital + Profit – Drawings
- BAssets – Liabilities = Capital + Profit + Drawings
- CAssets – Liabilities = Capital + Profit – Drawings
- DAssets + Liabilities = Capital – Profit + Drawings
2Which of the following is incorrect?
- AA debit entry increases assets
A debit entry increases drawings
A credit entry increases profit - BA debit entry decreases liabilities
A credit entry increases capital
A credit entry increases profit - CA credit entry decreases assets
A debit entry increases drawings
A debit entry increases profit - DA credit entry increases liabilities
A credit entry increases capital
A debit entry decreases profit
- AA debit entry increases assets
3What is the correct double-entry for the purchase of goods on credit?
- ADr Trade payables Cr Purchases
- BDr Purchases Cr Trade payables
- CDr Purchases Cr Trade receivables
- DDr Inventory Cr Trade payables
4Sally buys petrol for her car on a weekly basis. Which of the following methods of payment is she most likely to use to pay for her petrol?
- ADebit card
- BStanding order
- CDirect debit
- DBankers draft
5Mary receives a cheque from her sister. What term describes Mary’s role in this transaction?
- ADrawee
- BPayer
- CPayee
- DDrawer
6What is the main purpose of an accounting system in a business?
- ATo generate the business accounts
- BTo calculate the tax payable by a business
- CTo record, summarise and present information from documentation generated by
business transactions - DTo enable the owner to know if the business is trading profitably
7A trade receivable is?
- AA person owing money to the business in return for goods supplied
- BA person to whom the business owes money in return for goods supplied
- CA person to whom the business owes money which was lent to finance the trading
operations of the business - DA person who has purchased goods from the business
8Which of the following statements concerning a debit entry is incorrect?
- AIt records an increase in assets
- BIt records a business expense
- CIt records an increase in the liabilities of a business
- DIt records a decrease in the liabilities of a business
9Which of the following statements concerning a credit entry is incorrect?
- ACredit entries record increases in capital or liabilities
- BCredit entries record decreases in assets
- CCredit entries record increases in profits
- DCredit entries record increase in expenses
10A business receives an accountant’s bill for $500. Which of the following statements correctly shows the effect upon the accounting equation of the business, assuming the bill is
unpaid?- AAssets decrease, liabilities increase
- BCapital decreases, liabilities increase
- CCapital increases, liabilities decrease
- DAssets decrease, capital decreases
11Which of the following correctly explains the term ‘trade discount’?
- AA reduction in the amount of an invoice which a customer will pay
- BA price reduction which a supplier agrees with all customers in a particular trade
- CA price reduction which a supplier agrees with an individual customer after an invoice has been sent at full price
- DA reduction in the invoice price by a supplier because of the nature of the business with an individual customer
12Which of the following correctly explains the term ‘debit note’?
- AIt is issued by a supplier to a customer to demand payment in full for goods supplied
- BIt is issued by a customer to a supplier to request a credit note
- CIt is issued by a customer when goods are delivered
- DIt is issued by a customer to a supplier to cancel an invoice received
13Which of the following is not a method of payment by a customer?
- AA cheque
- BA cheque guarantee card
- CA credit card
- DA debit card
Information
- Description
- Professional Chartered Qualifications ACCA F3 Quiz on FIA FA1 Recording Financial Transactions (Mock 1), created by Shaikh Emad Gohar on 19/08/2014.
- Author
- Shaikh Emad Gohar
- Language
- English
- Views
- 4,919
- History
- Created on 19 Aug 2014 · updated on 18 Aug 2017
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- Rating
- 3.3 out of 5 · 3 ratings Rate this quiz