FAPS Week 2 Starter quiz

What is the accounting equation for the statement of financial position?

• Assets - Liabilities = Capital

• Assets = Liabilities -Capital

• Assets = Capital - Liabilities

• Assets = Liabilities * Equity

What is carriage in?

• A type of transportation

• When the buyer pays transport cost of purchases

• When the seller pays transport cost of purchases

• A style of writing

What is the double entry transaction for carriage out?

• Debit Carriage Outwards, Credit Cash/Bank

• Debit Cash/Bank, Credit Carriage Outwards

• Debit Carriage Inwards, Credit Cash/Bank

• Debit Cash/Bank, Credit Carriage Inwards

What is a prompt payment discount?

• A discount given for early payment

• A penalty for late payment

• A fee for processing payments

• A reward for using a specific payment method

A prompt payment discount is recorded as:

• Discount allowed

• Discount received

What is the difference between input and output tax?

• Input tax is paid on purchases and output tax is collected on sales.

• Input tax is collected on sales and output tax is paid on purchases.

• Both input and output tax are collected on sales.

• Both input and output tax are paid on purchases.

Name four control accounts.

• Marketing, IT, HR, legal

• Sales, Purchases, Rent, Utilities

• Receivable ledger , Payables ledger, VAT, Wages

• Assets, Liabilities, Equity, Revenue

What is a trial balance?

• A financial statement that lists all account balances

• A summary of all transactions in a period

• A report showing only income and expenses

• A document detailing cash flow activities

Which of the following errors can be revealed by the Trial balance?

• Error of omission

• Error of commission

• Balancing error

• Error of principle

Generally, how often are financial statements produced?

• Monthly

• Quarterly

• Annually

• Biannually