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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 THREE of the following are improved by the use of accounting standards?

Options:

A.

Consistency

B.

Cash flow

C.

Comparability

D.

Performance

E.

Fair presentation

F.

Position

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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

Financial controls are needed in order to:

Options:

A.

Reduce the cost of the external audit

B.

Ensure that the book-keeping system includes no errors

C.

Ensure that the management accounts are produced regularly

D.

Ensure that procedures are in place to minimize the risk of error and fraud

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