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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

If an auditor expresses an opinion of `fair presentation' on a set of financial statements, this means:

Options:

A.

The financial statements do not contain any errors

B.

There is fraud taking place in the company

C.

The financial statements comply with the requirements of the Companies Act and accounting statements

D.

The financial statements have been audited by the internal auditors

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Question 2

Which one of the following would not be classified as an efficiency ratio?

Options:

A.

Non-current asset turnover ratio

B.

Inventories days

C.

Payables days

D.

Current ratio

Question 3

Which of the following is an error of principle?

Options:

A.

Using the wrong amount when recording a transaction

B.

Recording a transaction in the wrong type of account

C.

A transaction recorded twice in the ledger accounts

D.

Recording a transaction in the wrong ledger account

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