PDF BA3 Study Guide

Fundamentals of Financial Accounting Questions and Answers

Question 9

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

To control the assets, liabilities and performance of the entity

To calculate taxation due to the tax authority

To record, categories and summaries business transactions

To provide useful information to users

Question 10

Refer to the Exhibit.

A company that is VAT-registered has the following transactions for the month of March.

All purchases were in respect of goods for resale and all items were subject to VAT at 17.5%.

Opening inventory was $16,200 and closing inventory was $18,400.

The movement on the VAT account for the period was:

$13,125 debit

$13,125 credit

$15,422 debit

$15,422 credit

Question 11

GH has the following transactions for the week of January 20X8:

GH is not registered for sales tax

What is the total of the sales day book for this week? Give your answer to the nearest whole number:

Question 12

Refer to the Exhibit.

The following information is available relating to the non-current assets of Company X:

Non-current assets that had originally cost $225,000 and had a carrying value of $105,000 were sold during the year.

The figure for purchases of non-current assets to be shown in the statement of cash flows will be, to the nearest $1,000: