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FIA FA2 Mock 1
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Perguntas do quiz (50)
1A payable ledger control balance will be treated in the final accounts as?
- AAn asset
- BA liability
- CAn item of revenue in the income statement
- DAn expense in the income statement
2A 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
3What 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
4Which of the following is an example of an item of revenue expenditure?
- AInsurance of goods in transit to customers
- BImport duties charged on a new non-current asset for the business
- CWages of employees installing a new non-current asset into the business premises
- DA new delivery van
5Which 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
6Which of the following would be classed as revenue expenditure for a shop?
1 Assistants’ wages
2 Business rates paid
3 Purchase of a new shop counter
4 Repainting the outside of the shop- A1 and 2
- B1, 2 and 3
- C1,2 and 4
- D3 and 4
7The profit earned by a business in 2010 was $72,500. The proprietor injected new capital of $8,000 during the year and withdrew goods for his private use which had cost $2,200. If net assets at the beginning of 2010 were $101,700, what were the closing net assets?
- A35000
- B39400
- C168400
- D180000
8Why is it important that a business distinguishes between current and non-current liabilities in its statement of financial position?
- ASo the owners know how much is owed by the business at all times
- BSo that users of the financial statements can assess the ability of the business to continue as a going concern
- CSo that users of the financial statements can assess the level of business debt due for repayment within a fairly short time
- DSo that users of the financial statements can assess the solvency of the business
9Which of the following is a current liability?
- AA bank overdraft
- BCapital
- CGoodwill
- DA loan from a director of the company repayable in two years’ time
10Which of the following best explains the term ‘current asset’?
- AAn asset currently in use by a business
- BSomething a business has or uses, which is likely to be held only for a short time
- CAn amount owed to somebody else which is due for repayment soon
- DMoney which the business currently has in its bank account
11Which of the following should be classified as a current asset?
- ATrade payables
- BDrawings
- CTrade receivables
- DCapital
12Michael has just started-up a business. He introduced $20,000 of his own savings, equipment worth $5,000 and obtained a bank loan of $2,000. What is the correct balance on Michael’s capital account following these transactions?
- A20000
- B27000
- C25000
- D22000
13Which of the following would not be classified as capital expenditure?
- AThe purchase of a new van
- BThe delivery charges for the van
- CThe signwriting on the van
- DThe road fund licence
14Which of the following should be classified as current assets?
- APayable
- BMotor vehicles
- CDiscounts received
- DTax refunds due
15Which of the following is a current asset?
- ABank deposit account
- BPremises
- CComputer
- DTools
16Which of the following are examples of revenue expenditure?
- APurchase of a secondhand delivery van
- BPurchase of inventories for resale
- CRepairs to the delivery van
- DInsurance of the delivery van
17Which of the following are examples of capital expenditure?
(1) Purchase of a new computer for office use
(2) Purchase of a secondhand computer for office use
(3) Repairs to the computer
(4) Purchase of additional hardware- A(1) only
- B(1) and (4)
- C(1), (2) and (4)
- DAll four
18Which of the following is the correct version of the accounting equation?
- ANon-current assets – current assets = capital – current liabilities + non-current liabilities
- BNon-current assets + current assets + current liabilities = capital + non-current liabilities
- CCurrent assets + non-current assets = capital + current liabilities + non-current liabilities
- DCapital = current assets + non-current assets + current liabilities + non-current liabilities
19At the beginning of the year, the balance on Ian’s capital account was $53,691.
During the year Ian made drawings of $19,500 and net loss for the year was $22,222.
What is the balance on Ian’s capital account at the end of the year?- A11969
- B95413
- C50969
- D56413
20Which of the following are not recognised as users of the financial statements prepared by a business?
- ALenders
- BCompetitors
- CSuppliers
- DCustomers
21At 1 April 20X0 the balance on Shaan’s capital account is $71, 534. In the next year she invests an additional $20,000 of personal funding and negotiates a $30,000 loan for the business. The profit for the year ended 31 March 20X1 was $21,345 and Shaan’s drawings for the year came to $14,754.
What is Shaan’s closing capital at 31 March 20X1?- A128125
- B78125
- C$127, 633
- D98125
22Dina purchased some equipment on 1 April 20X1 for $20,000. She incurred transportation costs of $1,000 and installation costs of $500. Shortly after the
installation Dina incurred a further $200 of costs because she moved the equipment after installation. In so doing she had to change the machines configuration and it malfunctioned. Dina depreciates 20% per annum on the reducing balance basis.
What is the net book value of the equipment at the year-ended 30 June 20X1?- A16000
- B17360
- C17200
- D16800
23Which one of the following statements correctly describes the difference between current liabilities and non-current liabilities?
- ACurrent liabilities are amounts which it is currently known must be paid, while non-current liabilities are amounts which might need to be paid in the long term
- BCurrent liabilities are amounts which must be paid within the next year, while non-current liabilities are amounts which must be paid in more than one year
- CCurrent liabilities are amounts under a certain value, while non-current liabilities are amounts greater than that value
- DCurrent liabilities are amounts for which there is currently a known value, while the value of non-current liabilities requires confirmation
24Mehroz purchases a new car for $20,000. She pays for the new car by part-exchanging her old car and paying $12,000 in cash. The old car cost $15,000 two years ago. Mehroz had been depreciating the car using the straight line method over a five year useful life.
What is the profit or loss on disposal of the old car?- A$1,000 loss
- B$1,000 profit
- C$3,000 loss
- D$3,000 profit
25A non-current was purchased at the beginning of Year 1 for $2,400 and depreciated by 20% per annum by the reducing balance method. At the beginning of Year 4 it was sold for $1,200. The result of this was:
- AA loss on disposal of $240
- BA loss on disposal of $29
- CA profit on disposal of $29
- DA profit on disposal of $240
26Which of the following is an acceptable definition of depreciation?
- AMatching the purchase cost of an asset to the period over which maintenance
- BMatching the cost of an asset to the expected economic benefit it will generate
- CMatching the cost of an asset to its eventual sales price
- DMatching the cost of an asset to its fair value
27Which of the following defines an asset?
- AAn item owned by an entity that will lead to future economic benefits;
- BA physical item that can be sold;
- CAn item controlled by an entity that will lead to future economic benefits;
- DAn item that can be converted into cash.
28A company bought a machine on 1 October 20X2 for $52,000. The machine had an expected life of eight years and an estimated residual value of $4,000.
On 31 March 20X7, the machine was sold for $35,000. The company’s year-end is 31 December. The company uses the straight-line method for depreciation and it charges a full year’s depreciation in the year of purchase and none in the year of sale.
What is the profit or loss on disposal of the machine?- ALoss $13,000
- BProfit $7,000
- CProfit $10,000
- DProfit $13,000
29A car was purchased for $12,000 on 1 April 20X1 and has been depreciated straight line over a five year useful life, assuming no residual value.
The company policy is to charge a full year’s depreciation in the year of purchase and no depreciation in the year of sale. The car was part exchanged for a replacement vehicle on 1 August 20X4 for an agreed figure of $5,000.
What was the profit or loss on the disposal of the vehicle for the year ended 31 December 20X4?- ALoss $2,200
- BLoss $1,400
- CLoss $200
- DProfit $200
30Jay has purchased some equipment. He is registered for sales tax. The following entries have been entered into the purchase day book:
Fax machine $35,000
Delivery $500
Sales tax at 20% $7,000
First year maintenance $1,000
Invoice Total $43,500
What is the total value to be posted to the non-current asset cost account?- A42500
- B35500
- C36500
- D43500
31From the following details, calculate the closing bank statement balance:
Unpresented/outstanding cheques 5,000
Deposits not credited (lodgements) 4,850
Closing bank balance in the records of the business before adjustments shown below 50,000
Bank charges 250
Dishonoured cheques 400- A49350
- B49200
- C50300
- D49500
32Which of the following is not a characteristic of a standing order?
- AUsed to make regular payments from an account
- BThe payment amount is fixed
- CThe recipient of the payment initiates each payment
- DThe amount of payment can be varied
33On 1 January 2007, a business sells a van which it bought on 1 January 2004 for $6,000 and has depreciated each year at 25% pa by the straight-line method. It trades in this van for a new one costing $10,000 and pays the supplier $9,200 by cheque.
What is the profit or loss on the disposal of the old van?- A$700 loss
- B$800 profit
- C$1,500 profit
- D$1,500 loss
34Malaika, a limited liability company, depreciates its plant and machinery at 20% per annum on the reducing balance basis on assets held at the period end.
On 1 January 20X9 it held a machine which had cost $20,000 in the year ended 31 December 20X7. In the year ended 31 December 20X9 the company part-exchanged this machine for a new machine. The amount paid for the new machine was $17,000 and a part exchange allowance of $13,000 was allowed for the old machine.- AProfit $800
- BProfit $3,000
- CLoss $200
- DProfit $200
35Pinto’s bank reconciliation statement shows outstanding lodgements paid in by Pinto of $3,800 and outstanding cheques to suppliers of $3,500. His bank account in his ledger shows a debit balance of $25,000.
What balance does Pinto’s bank statement show?- A25000
- B24700
- C25300
- D32300
36At the start of a month, accounts receivable owed $4,529. During the month total sales were $16,540 of which 40% were for cash. Cash was received from receivables of $7,231 during the month.
What was the balance of accounts receivable at the end of the month?- A1836
- B3914
- C5144
- D7222
37The cash book shows a bank balance of $5,675 overdrawn at 31 August 20X5. It is subsequently discovered that a standing order for $125 has been entered twice, and that a dishonoured cheque for $450 has been debited in the cash book instead of credited. What is the correct bank balance?
- A$5,100 overdrawn
- B$6,000 overdrawn
- C$6,250 overdrawn
- D$6,450 overdrawn
38The following information is available about a business:
Opening payables $14,550
Closing payables $12,560
Payments for purchases in the period $85,460
Of the payments, $35,640 were for cash purposes. What is the amount of purchases on credit for the period?- A47830
- B48810
- C49820
- D83470
39Receivables at 1 April were $8,450. Transactions during the month were credit sales of $19,600, cheques received from receivables of $22,430, sales returns of $1,000 and a contra with a credit supplier of $540. What was the balance on the receivables control account at 30 April?
- A4080
- B4620
- C6080
- D12820
40The closing balance on the trade payables account for a period was $3,528. During the period, cash paid to creditors was $11,583. The opening balance on the trade paybles’ account was $2,660.
What were the credit purchases for the period?- A10715
- B11798
- C12451
- D13534
41During a three-month period, a business made sales of $69,200 plus sales tax at 17.5%. The balance on the receivables account at the start of the period was $5,329 and at the end of the period $4,771.
How much cash was received from receivables during the period?- A68642
- B69758
- C80752
- D81868
42On 1 August 20X8 Ez was owed $45,300 by his credit customers. During the year Ez’s credit sales totalled $523,720. Discounts allowed totalled $3,500, returns from customers were $2,800 and dishonoured cheques amounted to $4,800. On 31 July 20X9 Ez was owed $48,720 from his credit customers.
What was the amount received from credit customers during the year ended 31 July 20X9?- A509200
- B514000
- C525640
- D518800
43The trade receivables control account balance is $1,000 and the total of the individual trade receivables balances is $850.
Which of the following errors could account for this difference?- AA receipt from a credit customer $150 was recorded twice in the receivables ledger and control account
- BA receipt from a credit customer $150 was not recorded at all in the receivables ledger
- CA receipt from a credit customer $150 was not recorded at all in the control account
- DA receipt from a credit customer $150 was recorded twice in the control account
44The balance on the payables ledgers control account was $3,446. it was then discovered that the total from the cash book payments during the period has been posted as $14,576 instead of $14,756. It was also discovered that the discounts received for the period of $392 had not been posted at all.
What is the correct balance on the payables ledgers control account?- A2874
- B3234
- C3658
- D4018
45Why would you not send a statement to an account written off as an irrecoverable debt?
- ADoing so would advise the receivable there is no need to pay
- BDoing so would encourage the receivable to pay
- CIt is against the law of contract to do so
- DIt is against data protection legislation to do so
46An account receivable is for $800. The customer is experiencing severe difficulties and has agreed to return goods costing $600. The supplier decides to write off the remaining amount. What is the double entry to record this?
- ADr Account receivable $800; Cr Sales returns $600; Cr irrecoverable debts $200
- BDr irrecoverable debts $200; Dr Bank $600; Cr Sales returns $800
- CDr irrecoverable debts $200; Dr Sales returns $600; Cr Account receivable $800
- DDr Sales returns $800; Cr irrecoverable debts $200; Cr Bank $600
47At 30 June 20X1 Cook was owed $44,320 by his customers. His receivables allowance brought forward from the previous year was $9,500. At the end of each
year he estimates the value of the allowance equivalent to 10% of receivables. What entry should be made in the income statement to adjust the receivables
allowance for the year ended 30 June 20X1?- A$4,432 debit
- B$4,432 credit
- C$5,068 debit
- D$5,068 credit
48At 30 June 20X1 Mark has receivables of $100,450 and an allowance brought forward of $5,550. At the end of the year a customer, who owed $4,500, is declared bankrupt. The debt is now considered to be irrecoverable. The allowance is to be calculated based upon 2% of receivables at the year-end.
What figure will appear in the statement of financial position at 30 June 20X1 for receivables?- A94031
- B88592
- C88481
- D95950
49The following details have been provided for a business:
Opening payables 35,800
Credit purchases 400,000
Cash purchases 58,000
Payments to credit suppliers 348,000
Discounts allowed 32,000
Discounts received 28,000
Sales ledger contra 14,000
Returns inwards 3,500
Returns outwards 5,800
What should be the closing balance on the payables control account at the year end?- A$38,300 credit
- B$68,000 credit
- C$40,000 credit
- D$98,000 credit
50A company receives news that a major customer has been declared bankrupt. The double entry required to write off the debt is:
- ADebit Irrecoverable debts
Credit Receivables - BDebit Allowance for receivables
Credit Receivables - CDebit Irrecoverable debts
Credit Payables - DDebit Receivables
Credit Irrecoverable debts
- ADebit Irrecoverable debts
Informações
- Descrição
- Quiz sobre FIA FA2 Mock 1, criado por Shaikh Emad Gohar em 08-10-2014.
- Autor
- Shaikh Emad Gohar
- Idioma
- English
- Visualizações
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