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Free BA3 – Fundamentals of Financial Accounting Practice Test Question

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Showing 10–12 of 15 questions

Question 10

Mr UY has just had property P re-valued. Mr UY originally purchased property P for

£560,000. It is now worth £780,000.

Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?

Select an option, then click Submit answer.

  • ○

    £220,000 credit

  • ○

    £220,000 debit

  • ○

    £780,000 debit

  • ○

    £780,000 credit


Question 11

IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?

Select an option, then click Submit answer.

  • ○

    Purchases are overstated

  • ○

    Closing inventory is understated.

  • ○

    Cost of sales are understated

  • ○

    Gross profit is overstated


Question 12

A ledger account is opened with a credit balance of $400. During the period the account is credited with $5,800 and debited with $6,500

What balance will open this account in the following period?

Select an option, then click Submit answer.

  • ○

    $300 Credit

  • ○

    $300 Debit

  • ○

    $1,100 Credit

  • ○

    $1,100 debit