CFAB Tutorial Chapter 5

CFAB Tutorial Chapter 5

University

11 Qs

quiz-placeholder

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CFAB Tutorial Chapter 5

CFAB Tutorial Chapter 5

Assessment

Quiz

Other

University

Medium

Used 28+ times

FREE Resource

11 questions

Show all answers

1.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

Anchor Ltd is preparing its financial statements. After transferring the balances on all the income and expenses ledger accounts to the profit and loss ledger account, the total credits in the profit and loss ledger account exceed the total debits by £4,000.


Which two of the following statements about Anchor Ltd are correct?

Anchor Ltd has made a loss for the year of £4,000

Anchor Ltd has made a profit for the year of £4,000

To begin to calculate the closing capital account balance, Anchor Ltd should credit the capital account and debit the profit and loss ledger account with £4,000

The opening balance on the profit and loss ledger account for the next reporting period is £4,000 credit

The closing balance on the profit and loss ledger account of £4,000 should be deducted from the capital account to give the profit for the year.

2.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

Which of the following would be classified as a non-current asset

Cash

Prepayments

Land

Receivables

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Gerrard Ltd is registered for VAT. In the month of April, it sells goods to customers for a total of £89,436 excluding VAT and purchases goods from suppliers for a total of £86,790 including VAT.


What is the net amount shown in Gerrard ltd's VAT account at the end of April?

£3,422 debit

£2,452 debit

£3,422 credit

£2,452 credit

4.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Which of the following statements concerning preparation of financial statements is true?

The balances on income and expenses accounts are brought down at the end of the accounting period to be carried forward to the next accounting period.

The balances on asset and liability accounts are summarised in an additional ledger account knwon as the statement of financial position ledger account.

The statement of profit or loss ledger account is a list of all the balances extracted from the business's accounts.

Loss for the year is a credit entry in the statement of profit or loss ledger account.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A sole trader had trade receivables of £2,700 at 1 May and during May made cash sales of £7,200, credit sales of £16,500 and received £15,300 from his credit customers.


The balance on his trade receivables account at the end of May was:

£1,500

£3,900

£8,700

£11,100

6.

MULTIPLE SELECT QUESTION

20 sec • 1 pt

Which two of the following types of account would normally appear on the debit side of the initial trial balance?

Asset

Liability

Income

Expense

Capital

7.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

Which of the following would be a credit balance in the trial balance?

Bank overdraft

Drawings

Purchases

Delivery outwards

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