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BA3 PDF + Testing Engine



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  • Exam Name: Fundamentals of Financial Accounting
  • Last Update: 02-Dec-2023
  • Questions and Answers: 393
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BA3 Questions and Answers

Question # 1

The Accounting Standards Board is responsible for:


Producing the Companies Act


Governing the activities of the external auditors


Producing International Accounting Standards


Producing Financial Reporting Standards

Question # 2

The concept of stewardship refers to which ONE of the following?


An accountant's responsibility to remain optimistic in the presenting financial information


An accountant's responsibility to properly look after and present financial information


An accountant's responsibility to properly advise management on financial information


An accountant's responsibility to make sure all financial information is correct

Question # 3

Which THREE of the following internal controls are procedures to help detect errors?


Spot checks


Segregation of duties


Authorization procedures


Safeguarding assets


Comparison of records with external evidence



Question # 4

W and Partners has an opening capital balance at 1 January of £14,640 credit.

During the period there was an increase in assets of £6,820 and an increase in liabilities of £5,400.

The balance on the capital account at the end of the period is:


£16,060 credit


£1,420 credit


£13,220 credit


£1,420 debit

Question # 5

Andrew is valuing the closing inventory at the lower of cost and net realizable value.

Which of the following concepts dictates his choice?


Materiality concept


Money measurement concept


Accrual concept


Prudence concept

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