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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

Which one of the following would not be classified as an efficiency ratio?

Options:

A.

Non-current asset turnover ratio

B.

Inventories days

C.

Payables days

D.

Current ratio

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Question 2

Refer to the exhibit.

A suspense account shows a credit balance of $230 which has arisen because of the recording of a gas bill twice in the gas account.

In order to correct the error, which one of the following journal entries is required?

The correct journal entry is

Options:

A.

A

B.

B

C.

C

D.

D

Question 3

Which of the following is the best definition of the objective of accounting?

Options:

A.

To control the assets, liabilities and performance of the entity

B.

To calculate taxation due to the tax authority

C.

To record, categories and summaries business transactions

D.

To provide useful information to users

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