Vce BA3 Questions Latest

Fundamentals of Financial Accounting Questions and Answers

Question 29

What will be the effect on the financial statements if the closing inventory figure is decreased?

Options:

An increase in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.

A decrease in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.

A decrease in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.

An increase in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.

Question 30

Your company provides a number of staff with lap-top computers, as well as pocket calculators. It capitalizes the cost of the computers and depreciates them over several years, but writes off the cost of the pocket calculators in full, against profits, in the period in which they are purchased.

The main justification for this difference in treatment is:

Options:

Computers last longer than pocket calculators

The company has always adopted this treatment, and therefore must be consistent with the treatment of previous periods

The cost of pocket calculators is not material

Pocket calculators do not decrease in value

Question 31

Which one of the following best describes the stewardship function?

Options:

Maximizing profits

Ensuring the recording, controlling and safeguarding of assets

Managing cash

Carrying out an external audit

Question 32

A company's cashbook has an opening balance of £4,860 debit. The following transactions then took place:

(a) Cash sales - £23,500, including VAT of £3,500

(b) Receipts from customers - £18,600

(d) Bank Charges - £260

What will be the resulting balance in the cash book?

Options:

£24,580 credit

£31,040 debit

£34,540 debit

£21,340 credit

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Fundamentals of Financial Accounting Questions and Answers

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CompTIA

Fortinet

Microsoft

Salesforce