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BA3 Exam Dumps : Fundamentals of financial accounting

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Fundamentals of financial accounting Questions and Answers

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Question 1

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

Options:

A.

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

B.

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

C.

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

D.

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

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Question 2

If a profitable entity is not required to register for sales tax with its local tax authority, which of the following statements is TRUE?

Options:

A.

A sales tax receivable account will be prepared in the nominal ledger

B.

Sales tax will not be added to the sales price of goods invoiced to customers

C.

Sales tax will not be added to the cost of goods and expenses supplied

D.

Profit for the year will be reported net of sales tax.

Question 3

In which section of the statement of cash flow would cash from share issues be included? Select one of the following

Statement of cash How for the year ended.......

Options:

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