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Ace Your BA3 CIMA Certificate Exam

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Total 393 questions

Fundamentals of Financial Accounting Questions and Answers

Question 13

Refer to the Exhibit.

A company is preparing its accounts to 30 April 2006. The latest telephone bill received by the company was dated 31 March and included call charges for the quarter 1 December to 28 February. The amount of the bill for call charges (excluding VAT) was $960. Most of the company's telephone bills are for similar amounts.

Which of the following journal entries should be made to the company's accounts at 30 April 2006?

The journal entries which should be made to the company's accounts at 30 April 2006 is

Options:

A.

A

B.

B

C.

C

D.

D

Question 14

A company is preparing its accounts to 30 November. The latest gas bill received by the company was dated 30 September and included usage charges for the quarter 1 June to 31 August of $5,700 and a service charge of $1,200 for the quarter 1 October to 31 December. It is estimated that the gas bill for the following quarter will be a similar amount.

What will be the amount of the accrual shown in the accounts at 30 November 2006?

Options:

A.

$5,300

B.

$3,400

C.

$3,800

D.

$4,900

Question 15

Which TWO of the following are characteristics of financial accounts?

Options:

A.

They ate produced from historic information

B.

They include forecasted information.

C.

They are used for internal decision making

D.

They are produced monthly or quarterly.

E.

They meet legal requirements

Question 16

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

Options:

A.

Original entry

B.

Omission

C.

Commission

D.

Principle

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Total 393 questions