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  • Exam Name: Fundamentals of Financial Accounting
  • Last Update: 01-Jun-2023
  • Questions and Answers: 393
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BA3 Questions and Answers

Question # 1

The Accounting Standards Board is responsible for:

A.

Producing the Companies Act

B.

Governing the activities of the external auditors

C.

Producing International Accounting Standards

D.

Producing Financial Reporting Standards

Question # 2

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

A.

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

B.

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

C.

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

D.

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?

A.

Spot checks

B.

Segregation of duties

C.

Authorization procedures

D.

Safeguarding assets

E.

Comparison of records with external evidence

F.

Reconciliations

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:

A.

£16,060 credit

B.

£1,420 credit

C.

£13,220 credit

D.

£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?

A.

Materiality concept

B.

Money measurement concept

C.

Accrual concept

D.

Prudence concept

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