FA1 Practice question set 6

1.rafe & Co have total accounts receivable at the end of their accounting period of $45,000. Of these it is discovered that one, Mr Xiun who owes $790, has been declared bankrupt, and another who gave his name as Mr Jones has totally disappeared owing Araf & Co $1,240.

FA1 Practice question set 5

41 In Dalveer’s cash receipts book for the month of June the trade receivables column totalled $6,570.


What does this amount represent? 
A The amount invoiced to Dalveer’s customers during June 
B The amount owed by Dalveer’s customers at the end of June 
C The amount received from Dalveer’s customers during June 
D The amount of discounts given to Dalveer’s customers during June

FA1 Practice question set 3

21 Which one of the following is the correct posting from the purchase day book? 

A Dr Purchases account Cr Payable's ledger control account 

B Dr Purchases account Cr Cash book 

C Dr Payable's ledger control account Cr Purchases account 

D Dr Cash book Cr Purchases account

FA1 Practice question set 2

11 Marvin has a balance of $3,350 on his sales ledger control account but his list of customer balances totals $3,500. 

Which of the following balances would explain the difference? 

A The total of sales day book was overstated by $150 

B A contra of $150 has been posted in the customer’s individual account but not the control account C A credit note of $150 has not been recorded in the sales day book

D An irrecoverable debt has been accounted for in the control account but not the individual customer account

FA1 Practice question set 4

31 Walter sells goods to Ninevah with a list price (exclusive of sales tax) of $4,300, offering a 4% trade discount. Sales tax is 17·5% 

What amount should be recorded for this transaction in the sales account (to the nearest $1)?

A $4,850 

B $4,128 

C $5,053 

D $3,513

FA1 Practice question set 1

ALL 25 questions are compulsory and MUST be attempted Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question. Each question is worth 2 marks.

1 Which of the following is an example of capital expenditure? 

A Paying for refurbishment as part of upgrading a building 

B Paying carriage outwards in respect of selling goods 

C Paying legal fees in order to recover customer debts 

D Paying bonuses to production operatives

1.ABC Co. Ltd, a construction company, purchases raw materials for use in its ongoing projects. Which of the following may be included in the cost of inventory?

PRACTICE QUESTION