FAPS Week 3 recap

Which is NOT the correct accounting equation?

• Capital = Assets - Liabilities

• Assets = Liabilities + Capital

• Liabilities = Assets - Capital

• Capital = Assets + Liabilities

What is the purpose of the trial balance?

• To ensure that credits are more than debits

• To check that debit and credit entries match

• To check that debits are more than credits

• To check that the business has enough cash

Liabilities total £29,590 and capital is £19,360. State the total value of assets.

• £-10,230

• £48,950

• £10,230

• £59,180

Select the correct account type for Motor Vehicle

• Current Liability

• Current Asset

• Non-Current Asset

• Non-Current Liability

Select the correct account type for Bank Overdraft

• Current Liability

• Current Asset

• Non-Current Asset

• Non-Current Liability

Select the correct account type for Receivables Ledger Control

• Current Liability

• Current Asset

• Non-Current Asset

• Non-Current Liability

Select the correct account type for Mortgage

• Current Liability

• Current Asset

• Non-Current Asset

• Non-Current Liability

Roberta has purchased a new non-current asset. The following items are included on the invoice and Roberta is VAT registered. Calculate the amount to be capitalised.

Equipment £15,900

3 year warranty £316

Installation £942

Spare parts £310

Delivery £197

VAT £3,533

Which of the following best describes integrity?

• To not allow bias, undue influence or conflicts of interest to affect professional judgements.

• To be honest and straightforward in all professional and business relationships.

• To be honest and straightforward in all professional and personal relationships.

• To not allow bias, undue influence or conflicts of interest to affect personal and professional judgements.

Bank charges fall into which of the following classifications?

• Capital expenditure

• Revenue expenditure