Pearson BA3 New Attempt

Fundamentals of Financial Accounting Questions and Answers

Question 53

Which of the following transactions would be classified as a capital transaction?

Depreciation on plant and machinery

Expenditure on heat and light

Repayment of bank loan

Payment of dividends

Question 54

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

Non-current asset turnover ratio

Inventories days

Payables days

Current ratio

Question 55

Which of the following transactions affects profit but does not affect cash?

Issue of share capital

Payments to trade payables

Purchase of non-current assets

Sales of goods on credit

Question 56

Refer to the Exhibit.

A company operates a FIFO system of inventory valuation. The following information is available for the month of April:

The closing value of inventory at the end of the month of April is