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FIA FA1 Recording Financial Transactions (Mock 1)

Shaikh Emad Gohar 13 questions 4,869 views 3.3 (3 ratings)

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Questions in this quiz (13)

  1. 1Which of the following is the accounting equation?
    1. AAssets + Liabilities = Capital + Profit – Drawings
    2. BAssets – Liabilities = Capital + Profit + Drawings
    3. CAssets – Liabilities = Capital + Profit – Drawings
    4. DAssets + Liabilities = Capital – Profit + Drawings
  2. 2Which of the following is incorrect?
    1. AA debit entry increases assets
      A debit entry increases drawings
      A credit entry increases profit
    2. BA debit entry decreases liabilities
      A credit entry increases capital
      A credit entry increases profit
    3. CA credit entry decreases assets
      A debit entry increases drawings
      A debit entry increases profit
    4. DA credit entry increases liabilities
      A credit entry increases capital
      A debit entry decreases profit
  3. 3What is the correct double-entry for the purchase of goods on credit?
    1. ADr Trade payables Cr Purchases
    2. BDr Purchases Cr Trade payables
    3. CDr Purchases Cr Trade receivables
    4. DDr Inventory Cr Trade payables
  4. 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?
    1. ADebit card
    2. BStanding order
    3. CDirect debit
    4. DBankers draft
  5. 5Mary receives a cheque from her sister. What term describes Mary’s role in this transaction?
    1. ADrawee
    2. BPayer
    3. CPayee
    4. DDrawer
  6. 6What is the main purpose of an accounting system in a business?
    1. ATo generate the business accounts
    2. BTo calculate the tax payable by a business
    3. CTo record, summarise and present information from documentation generated by
      business transactions
    4. DTo enable the owner to know if the business is trading profitably
  7. 7A trade receivable is?
    1. AA person owing money to the business in return for goods supplied
    2. BA person to whom the business owes money in return for goods supplied
    3. CA person to whom the business owes money which was lent to finance the trading
      operations of the business
    4. DA person who has purchased goods from the business
  8. 8Which of the following statements concerning a debit entry is incorrect?
    1. AIt records an increase in assets
    2. BIt records a business expense
    3. CIt records an increase in the liabilities of a business
    4. DIt records a decrease in the liabilities of a business
  9. 9Which of the following statements concerning a credit entry is incorrect?
    1. ACredit entries record increases in capital or liabilities
    2. BCredit entries record decreases in assets
    3. CCredit entries record increases in profits
    4. DCredit entries record increase in expenses
  10. 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?
    1. AAssets decrease, liabilities increase
    2. BCapital decreases, liabilities increase
    3. CCapital increases, liabilities decrease
    4. DAssets decrease, capital decreases

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.
Language
English
Views
4,869
Rating
3.3 out of 5 · 3 ratings
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