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BA3 – Fundamentals of Financial Accounting

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Showing 7–9 of 15 questions

Question 7

Office equipment store Officework Ltd has made the following purchase from supplier GX:

50 printers costing £3,500 £6,400

worth ofA4 paper £101,500

worth of general stationary

This purchase has been made on credit. Which TWO of the following show how the transaction should be recorded in Officework Ltd's documents?

Select all that apply, then click Submit answer.

  • ○

    £111,400 debit to payables

  • ○

    £111,400 debit to purchases

  • ○

    £111,400 credit to purchases

  • ○

    £111,400 credit to payables

  • ○

    £111,400 credit to stock

  • ○

    £111,400 debit to stock

  • ○

    £111,400 credit to receivables


Question 8

In internal auditing, detection of fraud is an important objective. The auditors will best be able to detect frauds if they are knowledgeable in the most common methods of fraud.

Which THREE of the following are common methods of fraud?

Select all that apply, then click Submit answer.

  • ○

    Ghost employees

  • ○

    Taking stationary home

  • ○

    Teeming and lading

  • ○

    Using a company car for personal use

  • ○

    Collusion with external parties

  • ○

    Using company phones for private calls


Question 9

A contra entry is best described as:

Select an option, then click Submit answer.

  • ○

    An entry made between two customers in the sales ledger

  • ○

    An entry made between two customers in the purchase ledger

  • ○

    An entry made to set off the balances of the same account within the sales ledger and the purchase ledger

  • ○

    An entry made to balance the control account