FIA FA1 Recording Financial Transactions (Mock 1)

Question 1 of 13

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Which of the following is the accounting equation?

Select one of the following:

  • Assets + Liabilities = Capital + Profit – Drawings

  • Assets – Liabilities = Capital + Profit + Drawings

  • Assets – Liabilities = Capital + Profit – Drawings

  • Assets + Liabilities = Capital – Profit + Drawings

Question 2 of 13

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Which of the following is incorrect?

Select one of the following:

  • A debit entry increases assets
    A debit entry increases drawings
    A credit entry increases profit

  • A debit entry decreases liabilities
    A credit entry increases capital
    A credit entry increases profit

  • A credit entry decreases assets
    A debit entry increases drawings
    A debit entry increases profit

  • A credit entry increases liabilities
    A credit entry increases capital
    A debit entry decreases profit

Question 3 of 13

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What is the correct double-entry for the purchase of goods on credit?

Select one of the following:

  • Dr Trade payables Cr Purchases

  • Dr Purchases Cr Trade payables

  • Dr Purchases Cr Trade receivables

  • Dr Inventory Cr Trade payables

Question 4 of 13

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Sally 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?

Select one of the following:

  • Debit card

  • Standing order

  • Direct debit

  • Bankers draft

Question 5 of 13

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Mary receives a cheque from her sister. What term describes Mary’s role in this transaction?

Select one of the following:

  • Drawee

  • Payer

  • Payee

  • Drawer

Question 6 of 13

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What is the main purpose of an accounting system in a business?

Select one of the following:

  • To generate the business accounts

  • To calculate the tax payable by a business

  • To record, summarise and present information from documentation generated by
    business transactions

  • To enable the owner to know if the business is trading profitably

Question 7 of 13

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A trade receivable is?

Select one of the following:

  • A person owing money to the business in return for goods supplied

  • A person to whom the business owes money in return for goods supplied

  • A person to whom the business owes money which was lent to finance the trading
    operations of the business

  • A person who has purchased goods from the business

Question 8 of 13

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Which of the following statements concerning a debit entry is incorrect?

Select one of the following:

  • It records an increase in assets

  • It records a business expense

  • It records an increase in the liabilities of a business

  • It records a decrease in the liabilities of a business

Question 9 of 13

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Which of the following statements concerning a credit entry is incorrect?

Select one of the following:

  • Credit entries record increases in capital or liabilities

  • Credit entries record decreases in assets

  • Credit entries record increases in profits

  • Credit entries record increase in expenses

Question 10 of 13

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A 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?

Select one of the following:

  • Assets decrease, liabilities increase

  • Capital decreases, liabilities increase

  • Capital increases, liabilities decrease

  • Assets decrease, capital decreases

Question 11 of 13

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Which of the following correctly explains the term ‘trade discount’?

Select one of the following:

  • A reduction in the amount of an invoice which a customer will pay

  • A price reduction which a supplier agrees with all customers in a particular trade

  • A price reduction which a supplier agrees with an individual customer after an invoice has been sent at full price

  • A reduction in the invoice price by a supplier because of the nature of the business with an individual customer

Question 12 of 13

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Which of the following correctly explains the term ‘debit note’?

Select one of the following:

  • It is issued by a supplier to a customer to demand payment in full for goods supplied

  • It is issued by a customer to a supplier to request a credit note

  • It is issued by a customer when goods are delivered

  • It is issued by a customer to a supplier to cancel an invoice received

Question 13 of 13

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Which of the following is not a method of payment by a customer?

Select one of the following:

  • A cheque

  • A cheque guarantee card

  • A credit card

  • A debit card

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FIA FA1 Recording Financial Transactions (Mock 1)

Shaikh Emad Gohar
Quiz by , created over 2 years ago

Professional Chartered Qualifications ACCA F3 Quiz on FIA FA1 Recording Financial Transactions (Mock 1), created by Shaikh Emad Gohar on 19/08/2014.

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Shaikh Emad Gohar
Created by Shaikh Emad Gohar over 2 years ago
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