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BA3 – Fundamentals of Financial Accounting

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Showing 4–6 of 15 questions

Question 4

As well as independence other essential elements of internal audit can be identified.

Which THREE of the following would be classed as essential elements of internal audit?

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    Due care

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    Relationships

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    Cost efficient

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    Timely

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    Evidence

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    Efficient


Question 5

The Finance Director of EFG company has made the following statements regarding the recording of expenditure relating to the entity's property, plant and equipment (PPE) in the nominal ledger.

Which THREE of the following statements are true?

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    The annual depreciation charge reduces EFG's profit for the year.

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    The cost of insurance for the factory is debited to the PPE asset account.

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    The loss on the disposal of PPE reduces EFG's profit for the year

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    The cost of repainting the office is credited to the repairs expense account

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    The loss on the disposal of PPE is recorded in a liability account

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    The annual depreciation charge reduces the carrying value of PPE


Question 6

Select the THREE INCORRECT statements from the following list of statements about memorandum accounts:

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    A memorandum ledger is an account that is not part of the bookkeeping system as a whole

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    All transactions in a memorandum account have to be balanced with a corresponding entry in the nominal ledger

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    A memorandum account is part of the nominal ledger

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    A memorandum account is a daybook