CIMAPRA17-BA3-1 BA3 - Fundamentals of Financial Accounting Exam Practice Test

Page: 1 / 14
Total 393 questions

Question 1

XYZ's computerized accounting system automatically updates the non-current asset register when additions to property, plant and equipment are made A machine costing $120,000, with a useful life of five years and an estimated residual value of $12,000 is acquired at the year end.

Which of the following statements is correct in relation to the recording of this asset in the non-current asset register?

Answer : B

Question 2

In accordance with IAS 7 Statements of Cash Flow, which TWO of the following are cash flows presented as investing activities?

Answer : A, E

Question 3

ABC produces accounts to the year ended 31 December annually Extracts from the most recent financial statements are.

Which of the following ratios is a liquidity ratio?

Answer : D

Question 4

Accounting standards and company law both influence how assets and liabilities ate classified and presented in financial statements

An amount owing at the year end, due for repayment more from one year from the date that the statement of financial position is being prepared, will be

classified under which of the following headings?

Answer : A

Question 5

MNO operates an imprest system to maintain a float of petty cash of 5100 At the end of the week the petty cash expense vouchers total $76 and there is $36 cash in the float. Which of the following, taken independently, would explain this difference of $10?

Answer : A

Question 6

An invoice for stationery has been debited and credited to the correct accounts but has been duplicated.

This would result in:

Answer : C

Question 7

Where a transaction is entered into the correct ledger accounts, but the wrong amount is used, the error is known as an error of

Answer : A

Page:    1 / 14   
Total 393 questions