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

Which of the errors above would require an entry to the suspense 

account as part of the process of correcting them? 

A 

3 and 4 

B 

1 and 3 

C 

2 and 5 

D 

2 and 3 

Statement of financial position and statement of profit or loss 

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Which one of the following is the accounting equation? 

A 

Assets – Liabilities + Share Capital = Retained Earnings 

B 

Assets = Liabilities – Capital + Retained Earnings 

C 

Assets – Liabilities – Capital = Retained Earnings 

D 

Assets + Liabilities = Capital + Retained Earnings 

62 

With regard to the statement of profit or loss which one of the 

following statements is true?

 

A 

It illustrates a business’ financial position 

B 

It includes dividends paid 

C 

It illustrates the business’ financial performance 

D 

It has to show the results for one year 

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