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BA3 Exam Dumps : Fundamentals of Financial Accounting

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Fundamentals of Financial Accounting Questions and Answers

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Question 1

The financial accounts, as prepared by the directors of a company, are required to show a 'true and fair view'. This means that:

Options:

A.

The accounts are accurate

B.

The accounts are prepared in accordance with the Companies Act and comply with relevant reporting standards

C.

The accounts contain no fraudulent transactions

D.

No errors were detected during the audit of the accounts

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Question 2

Refer to the Exhibit.

The following information is given at a manufacturer's year end:

Using some or all of the above figures, the correct figure for factory cost of goods completed is:

Options:

A.

£115,700

B.

£125,700

C.

£131,700

D.

£135,300

Question 3

Life membership fees payable to a club or society are usually dealt with by:

Options:

A.

Crediting the total received to the income and expenditure account in the year in which they are received

B.

Debiting the total received to the income and expenditure account in the year in which they are received

C.

Debiting the total received to a Life Memberships account and transferring a proportion each year to the income and expenditure account

D.

Crediting the total received to a Life Memberships account and transferring a proportion each year to the income and expenditure account

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