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Vce BA3 Questions Latest

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Total 393 questions
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Fundamentals of Financial Accounting Questions and Answers

Question 29

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.

Question 30

Your company provides a number of staff with lap-top computers, as well as pocket calculators. It capitalizes the cost of the computers and depreciates them over several years, but writes off the cost of the pocket calculators in full, against profits, in the period in which they are purchased.

The main justification for this difference in treatment is:

Options:

A.

Computers last longer than pocket calculators

B.

The company has always adopted this treatment, and therefore must be consistent with the treatment of previous periods

C.

The cost of pocket calculators is not material

D.

Pocket calculators do not decrease in value

Question 31

Which one of the following best describes the stewardship function?

Options:

A.

Maximizing profits

B.

Ensuring the recording, controlling and safeguarding of assets

C.

Managing cash

D.

Carrying out an external audit

Question 32

A company's cashbook has an opening balance of £4,860 debit. The following transactions then took place:

(a) Cash sales - £23,500, including VAT of £3,500

(b) Receipts from customers - £18,600

(c) Payments to payables £12,400, less cash discounts of £240

(d) Bank Charges - £260

What will be the resulting balance in the cash book?

Options:

A.

£24,580 credit

B.

£31,040 debit

C.

£34,540 debit

D.

£21,340 credit

Page: 8 / 15
Total 393 questions
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