WorksheetsFA (New Mock) 2024
Total questions: 15
Worksheet time: 8mins
Which of the following statements is true?
The directors of a company are liable for any losses of the company
A sole trader business is owned by shareholders and operated by the proprietor
Partners are liable for losses in a partnership in proportion to their profit share ratio
A company is run by directors on behalf of its members
Which of the following statements best defines a statement of financial position?
It is a summary of income and expenditure for an accounting period
It is a summary of cash receipts and payments made during an accounting period
It is a summary of assets, liabilities and equity at a specified date
It is a summary of assets and expenses at a specified date
Which of the following statements best defines a statement of profit or loss?
It is a summary of assets and expenses at a specified date
It is a summary of cash receipts and payments made during an accounting period
It is a summary of assets, liabilities and equity at a specified date
It is a summary of income and expenditure for an accounting period
Which of the following statements best defines a liability?
A liability is an obligation arising from a past transaction or event.
A liability is a legally binding amount owed to a third party.
A liability is a present obligation of the entity to transfer an economic resource as a result of past events.
A liability is anything which results in an outflow of economic benefits from an entity.
Which of the following statements best defines an expense?
An expense is any outflow of economic benefits in an accounting period.
An expense is an outflow of economic benefits resulting from the purchase of
resources in an accounting period.
An expense is an outflow of economic benefits resulting from a claim by a third party.
An expense is decrease in assets, or increase in liabilities, that result in decreases in equity other than those relating to distributions to holders of equity claims.
Which of the following statements is true in relation to a partnership?
A partnership is a separate legal entity
A partnership is jointly owned and managed by the partners
A partnership can raise capital by issuing shares to members of the public
A partnership is able to own property and other assets in its own name
Which of the following statements is true in relation to a sole trader?
A sole trader cannot have any employees
A sole trader is able to introduce or withdraw capital from the business at any time
A sole trader has limited liability for the debts of the business
A sole trader can operate a business from only one location
Which of the following statements best defines an asset?
An asset is a resource owned by the entity with a financial value.
An asset is a resource controlled by an entity from which future economic benefits are expected to be generated.
An asset is a resource controlled by an entity as a result of past events.
An asset is a present economic resource controlled by the entity as a result of past events.
The double-entry system of bookkeeping normally results in which of the following balances on the ledger accounts?
Debit balances:
Credit balances:
Assets and revenues
Liabilities, capital and expenses
Revenues, capital and liabilities
Assets and expenses
Assets and expenses
Liabilities, capital and revenues
Assets, expenses and capital
Liabilities and revenues
Which of the following entries would be required to account for a reimbursement to the petty cash float of $125 from the bank account?
Dr Petty cash
Cr Cash and bank
Dr Cash and bank
Cr Petty cash
Dr Drawings
Cr Petty cash
Dr Drawings
Cr Cash and bank
Andi started a taxi business by transterring a personally-owned car, at a value of $5,000, into
8he business.
What accounting entries are required to record this transaction?
Dr Capital $5,000, Cr Car $5,000
Dr Car $5,000, Cr Drawings $5,000
Dr Car $5,000, Cr Capital $5,000
Dr Drawing $5,000 Cr Car $5,000
Which of the following statements best describes the purpose of a purchase order?
It is issued to a supplier to request supply of goods from them on terms specified within the order.
It is issued to a customer to confirm the supply of goods to them on terms specified in the order.
It is issued to a supplier as notification of payment.
It confirms the price that will be charged by a supplier for goods supplied.
Which of the following statements best describes the purpose of a goods despatched note
(delivery note)?
It is issued by a customer returning faulty goods to their supplier.
It is issued by a customer to their supplier and specifies the quantity and type of goods they require to be despatched.
It is issued by a supplier to their customer and specifies the quantity and type of goods
delivered to that customer.
It is issued by a supplier to their customer and specifies what goods will be provided
to them at a specified future date.
Perry made the following accounting entries to account for the purchase of goods on credit from a supplier:
Debit Trade payables' ledger control account
$3,200
Credit Purchases
$3,200
What journal entry is required to account correctly for the purchase of the goods on credit from a supplier?
Debit Purchases $3,200, and Credit Trade receivables' control $3,200
Debit Purchases $3,200, and Credit Trade payables' control $3,200
Debit Purchases $3,200, and Credit Suspense $3,200
Debit Purchases $6,400, and Credit Trade payables' control $6,400
Indicate whether each of the following items is a book of prime entry.
Sales day book
Trial balance
The journal
Accounts receivable ledge
