Acca financial Accounting (FA) Study Text ac ca (FA)

PRACTICE QUESTIONS 

464

 

KAPLAN PUBLISHING

 

8 

A credit balance on a ledger account indicates:

 

A 

an asset or an expense 

B 

a liability or an expense 

C 

an amount owing to the organisation 

D 

a liability or revenue 

9 

The double entry system of bookkeeping normally results in which of 

the following balances on the ledger accounts?

 

 

Debit balances  

Credit balances 

A 

Assets and revenues  

Liabilities, capital and expenses 

B 

Revenues, capital and liabilities   Assets and expenses 

C 

Assets and expenses  

Liabilities, capital and revenues 

D 

Assets, expenses and capital  

Liabilities and revenues 

10 

The main aim of accounting is to:

 

A 

maintain ledger accounts for every asset and liability 

B 

provide financial information to users of such information 

C 

produce a trial balance 

D 

record every financial transaction individually 

11 

A credit entry could lead to

: 

A 

an increase in assets or increase in liabilities 

B 

an increase in expense or an increase in share capital 

C 

an increase in liabilities or an increase in share capital 

D 

an increase in liabilities and a decrease in sales 

Sales tax 

12  All the sales of Gail, a retailer, were made at a price inclusive of sales tax 

at the standard rate of 17.5% and all purchases and expenses bore sales 

tax at the standard rate. For the three months ended 31 March 20X5 gross 

sales were $23,500, purchases were $12,000 (net) and expenses $800 

(net).