FA Test 1 Total points 84/100

4,5,6,13

Email *

zhangyujiao2004@gmail.com

Name & Roll number

Aung Su Myat Noe (BT Roll Number is 5)

1- 2/2
Oscar runs a sole trader business selling computers. On 12 January 20X7, 
he employed his daughter as an administrator for the business and took a 
computer from the store room for her to use in the office. What is the doubl
e entry for this transaction? 

A Dr Drawings Cr Cost of sales

B Dr Non-current assets Cr Cost of sales

C Dr Cost of sales Cr Drawings

D Dr Cost of sales Cr Non-current assets

2- 2/2
Which of the following pairs of items would appear on the same side of the
 trial balance? 

A Drawings and accruals

B Carriage outwards and prepayments

C Carriage inwards and rental income

D Opening inventory and purchase returns

3-The  double‐entry  system  of  bookkeeping  normally  results  in  which  2/2
of  the  following balances on the ledger accounts? 

A Assets and revenues Liabilities ( Dr balance ) , capital and expenses ( Cr

balance )

B Revenues, capital and liabilities ( Dr balance ) - Assets and expenses ( Cr

balance )

C Assets and expenses ( Dr balance)- Liabilities, capital and revenues ( Cr

balance )

D Assets, expenses and capital ( Dr balance ) - Liabilities and revenues ( Cr

balance )
 4- 2/2
Which of the following entries would be required to account for a reimburs
ement to the petty cash float of $125 from the bank account? 

A Dr Petty cash Cr Cash and bank

B Dr Cash and bank Cr Petty cash

C Dr Drawings Cr Petty cash

D Dr Drawings Cr Cash and bank

:
 5- 2/2

A 108,350 ( Gross proXt )& 36,250 ( Net proXt )

B 108,350 ( Gross proXt )& 28,450 ( Net proXt )

C 110,300 ( Gross proXt )& 28,450 ( Net proXt )

D 110,300 ( Gross proXt )& 36,250 ( Net proXt )

:
 6 Don’t put $ in answer. ···/2

750

Correct answer

3150

7-Answer only figure . Don't put Dr or Cr . Don't put $ in answer. 2/2

2675
:
 8-Andrea  started  a  taxi  business  by  transferring  her  car,  at  a  value  2/2
of  $5,000,  into 
the business. What accounting entries are required to record this transacti
on? 

A Dr Capital $5,000, Cr Car $5,000

B Dr Car $5,000, Cr Drawings $5,000

C Dr Car $5,000, Cr Capital $5,000

D Dr Drawing $5,000 Cr Car $5,000

9- 2/2
Which of the following statements best describes the purpose of a purchas
e order? 

A It is issued to a supplier to request supply of goods from them on terms

speciXed within the order

B It is issued to a customer to conXrm the supply of goods to them on terms

speciXed in the order

C It is issued to a supplier as notiXcation of payment.

D It conXrms the price that will be charged by a supplier for goods supplied.
:
 10-Which  of  the  following  statements  best  describes  the  purpose  of  2/2
a  goods  despatched note (delivery note)? 

A It is issued by a customer returning faulty goods to their supplier.

B It is issued by a customer to their supplier and speciXes the quantity and type
of goods they require to be despatched

C It is issued by a supplier to their customer and speciXes the quantity and

type of goods delivered to that customer

D It is issued by a supplier to their customer and speciXes what goods will be

provided to them at a speciXed future date.

11-An invoice is best defined by which of the following statements?  2/2

A An invoice is raised by a business and conXrms only the amount due to be paid
for goods and services provided

B An invoice is raised by business and issued to a supplier as recognition of

goods and services received from that supplier

C An invoice is raised by a business and issued to a customer to conXrm

amounts not yet paid

D An invoice is raised by a business and issued to a customer to request

payment for
:
 12-
Are each of the following statements about the accounting equation true or false? 

True False Score

Business assets will always equal business
1/1
 liabilities

Business assets will always exceed busine
0/1
ss liabilities

Business assets include proprietor’s capital 1/1

Business liabilities include proprietor’s capi
1/1
tal

Correct answers

True False

Business assets will always exceed business 
liabilities
:
 13-Are each of the following statements about the journal true or false? 

True False Score

The journal records all bank and cash trans
1/1
actions

The journal records all accounting transacti
1/1
ons

The journal is a book of prime entry 1/1

The journal records all credit sales transact
0/1
ions

Correct answers

True False

The journal records all credit sales transactio
ns
:
 14- 2/2

A Debit Motor vehicles $5,000, and Credit Accumulated depreciation $5,000

B Debit Depreciation Expense $10,000, and Credit Accumulated depreciation

$10,000

C Debit Depreciation expense $5,000, and Credit Accumulated depreciation

$5,000

D Debit Accumulated depreciation $10,000, and Credit Depreciation expense

$10,000
:
 15- 0/2

A Debit Trade receivables’ ledger control, and Credit Irrecoverable debts

B Debit Allowance for receivables, and Credit Irrecoverable debts

C Debit Receivables expense, and Credit Trade receivables’ ledger control

D Debit Receivables expense, and Credit Allowance for receivables

Correct answer

C Debit Receivables expense, and Credit Trade receivables’ ledger control

:
 16- 2/2

A Debit Accumulated depreciation $2,500, and Credit Disposal of machinery

$2,500

B Debit Sales revenue $2,500, and Credit Bank $2,500

C Debit Disposal of machinery $2,500, and Credit Machinery asset $2,500

D Debit Sales revenue $2,500, and Credit Disposal of machinery $2,500

:
 17- 0/2

A Debit Trade payables’ ledger control $1,250, and Credit Trade receivables’
ledger control $1,250

B Debit Trade payables’ ledger $1,250, and Credit Trade receivables’ ledger $1,250

C Debit Trade receivables’ control $1,250, and Credit Trade payables’ control
$1,250

D Debit Trade receivables’ ledger $1,250, and Credit Trade payables’ ledger
$1,250

Correct answer

A Debit Trade payables’ ledger control $1,250, and Credit Trade receivables’ ledger
control $1,250
:
 18-What  journal  entry  is  required  to  correctly  account  for  the  2/2
depreciation  charge  for  the year of $3,500 relating to buildings? 

A Debit Depreciation expense $3,500, and Credit Buildings $3,500

B Debit Buildings $3,500, and Credit Accumulated depreciation $3,500

C Debit Depreciation expense $3,500 and Credit Accumulated depreciation

$3,500

D Debit Accumulated depreciation $3,500, and Credit Depreciation expense

$3,500

19- 2/2
What are the accounting entries required to account for settlement discoun
t received of $250 from a credit supplier? 

A Debit Discount received $250, and Credit Trade payables’ control $250

B Debit Trade payables’ control $250, and Credit Discount received $250

C Debit Discount received $250, and Credit Trade payables’ control $250

D Debit Trade payables’ control $250, and Credit Revenue $250

:
 20- 2/2

A Debit Purchases $3,200, and Credit Trade receivables’ control $3,200

B Debit Purchases $3,200, and Credit Trade payables’ control $3,200

C Debit Purchases $3,200, and Credit Suspense $3,200

D Debit Purchases $6,400, and Credit Trade payables’ control $6,400

:
 21- Don't put $ in answer. 2/2

500
:
 22-Indicate whether each of the following items is a book of prime entry. 

Not a book
A book of
of prime Score
prime entry
entry

Sales day book 1/1

Trial balance 1/1

The journal 1/1

Accounts receivable ledger 1/1

23- 2/2

A $25

B $60

C $35

D $50
:
 24- 2/2
Which of the following explains the imprest system of operating petty cash
? 

A Weekly expenditure cannot exceed a set amount

B The exact amount of expenditure is reimbursed at intervals to maintain a

Xxed doat

C All expenditure out of the petty cash must be properly authorised

D Regular equal amounts of cash are transferred into petty cash at intervals

25- Don't put $ in answer. 2/2

3004
:
 26- ···/2
Ignatius operates the imprest system for petty cash. At 1 July there was a 
float of $150, but it was decided to increase this to $200 from 31 July onw
ards. During July, the petty cashier received $25 from staff for using the ph
otocopier and a cheque for $90 was cashed for an employee. In July, cheq
ues were drawn for $500 for petty cash.                                                    
 How much cash was paid out as cash expenses by the petty cashier in Jul
y? Don't put $ in answer.

565

Correct answer

385

27- 2/2
Which of the following might explain a debit balance on a payables ledger 
account? 

A The business took a settlement discount to which it was not entitled and paid
less the amount due

B The business mistakenly paid an invoice twice

C The book-keeper failed to enter a contra with the receivables ledger

D The book-keeper failed to post a cheque paid to the account

:
 28- Don't put $ in answer. 2/2

38100

29- Don't put $ in answer. ···/2

20000

Correct answer

19000
:
 30-In which book of prime entry would a business record the part‐ 2/2
exchange value received for a vehicle traded in when purchasing a new veh
icle? 

A The sales daybook

B The cash payments book

C The journal

D The non-current asset register

31-Mike  wrongly  paid  Norman  $250  twice  for  goods  purchased  on  0/2
credit.  Norman subsequently  reimbursed Mike  for 
the overpayment of $250. How should Mike account for the reimbursement
 received from Norman? 

A Debit Cash received, and Credit Sales

B Debit Cash received, and Credit Discount received

C Debit Cash received, and Credit Trade receivables’ control account

D Debit Cash received, and Credit Trade payables’ control account

Correct answer

D Debit Cash received, and Credit Trade payables’ control account

:
 32- 2/2
What are the accounting entries required to record sales on credit of $10,0
00, on which sales tax is applied at the rate of 20%? 

A Debit Trade receivables’ control account $12,000, Credit Sales revenue

$10,000 and Credit Sales tax $2,000

B Debit Trade receivables’ control account $10,000, Credit Sales revenue $8,000
and Credit Sales tax $2,000

C Debit Sales revenue $10,000, Debit Sales tax $2,000 and Credit Suspense
$12,000

D Debit Sales revenue $8,000, Debit Sales tax $2,000 and Credit Suspense
$10,000

33-What are  the accounting entries  required  to  record  2/2

the purchase of goods  for  resale on credit with a gross 
invoice value of $1,541, which  includes  sales  tax at  the 
rate of 15%. The business is registered to account for sales tax.  

A Debit Purchases $1,309.85, Debit Sales tax $231.15, and Credit Trade payables’
control $1,541.00

B Debit Purchases $1,340, Debit Sales tax $201, and Credit Trade payables’
control $1,541

C Debit Purchases $1,541.00, Debit Sales tax $231.15, and Credit Trade payables’
control $1,772.15

D Debit Purchases $1,772.15, Credit Sales tax $231.15 and Credit Trade payables’
:
 34- 2/2
Which of the following best describes the purpose of a purchase invoice? 

A It is issued by a supplier as a request for payment

B It is sent to supplier as a request for a supply

C It is issued by supplier listing details of recent transactions

D It is sent to the supplier as notiXcation of payment

35-In which book of prime entry would discounts received be recorded?  2/2

A Cash received book

B Cash payments book

C Sales day book

D Purchases day book

:
 36- Don't put $ in answer. ···/2

164

Correct answer

70

37-Answer with one decimal place.Don't put $ in answer. 2/2

655.5
:
 38-Don't put $ in answer. 2/2

75788

39- 2/2
If sales (including sales tax) amounted to $27,612.50, and purchases (excl
uding sales tax) amounted to $18,000, what would be the balance on the s
ales tax account, assuming all transactions are subject to sales tax at 17.5
%? Answer with one decimal place. Don't put $ in answer.

962.5
:
 40-In  the quarter ended 31 March 20X2, Chas had  2/2
taxable sales, net of sales 
tax, of $90,000 and taxable purchases, net of sales tax, of $72,000. If the ra
te of sales tax is 10%, how much sales tax is payable to the tax authority? 

A $1,800 receivable

B $2,000 receivable

C $1,800 payable

D $2,000 payable

41-Don't put $ in answer. 2/2

5300
:
 42-Which of the following statements best explains the sales account?  2/2

A It is credited with the total of sales made, including sales tax

B It is credited with the total of sales made, excluding sales tax

C It is credited with the total purchases made, including sales tax

D It is credited with the total expenses, excluding sales tax

43- 2/2
A business sold goods that had a net value of $600 to Lucid.  What entries 
are required by the seller to record this transaction if sales tax is applied at 
17.5%? 

A Dr Lucid $600, Dr Sales tax $105, Cr Sales $705

B Dr Lucid $705, Cr Sales tax $105, Cr Sales $600

C Dr Lucid $600, Cr Sales tax $105, Cr Sales $600

D Dr Sales $600, Dr Sales tax $105, Cr Lucid $705

:
 44- 2/2
Laker, a customer, returned goods to Streamer that had a net value of $200
.  What  entries  are  required  by  Streamer  to  record  this  transaction  if 
transactions  are subject to sales tax is payable at 17.5%? 

A Dr Returns inward $200, Dr Sales tax $35, Cr Laker $235

B Dr Returns inward $235, Cr Sales tax $35, Cr Laker $200

C Dr Purchases $200, Dr Sales tax $35, Cr Laker $235

D Dr Laker $235, Cr Returns inward $200, Cr Sales tax $35

45- 2/2
Stung, which is registered to account for sales tax, purchased furniture on 
credit at a cost of $8,000, plus sales tax of $1,200. What are the correct ac
counting entries to record this transaction? 

A Debit Furniture 9,200 Credit Supplier 9,200

B Debit Furniture 8,000 Credit Sales tax 1,200 Credit Supplier 6,800

C Debit Furniture 8,000 Credit Supplier 9, 200 Debit Sales tax 1,200

D Debit Furniture 8,000 Credit Supplier 8,000

:
 46-Are the following statements about sales tax true or false? 

True False Score

Sales tax is a form of indirect taxation 1/1

If input tax exceeds output tax the differen
1/1
ce is payable to the tax authorities

Sales tax is included in the reported sales a
nd purchases of a sales tax registered 1/1
business

Sales tax cannot be recovered on some pur
1/1
chases

This content is neither created nor endorsed by Google. - Terms of Service - Privacy Policy

 Forms
: