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CIMA Fundamentals of Financial Accounting Sample Questions:

1. A company started the year with an allowance for receivables of $2,500.
During the year, an $800 bad debt was written off and a debt of $350 that had been written off as bad in the previous year was received in full. At the year end the allowance for receivables was $2,300.
The charge in the income statement for the year in respect of bad debts is $

2. Where a transaction is credited to the correct ledger account but debited to the purchases account instead of the fixed asset account, the error is known as an error of:

A) Principle
B) Commission
C) Original entry
D) Omission

3. FGH has extracted its trial balance from its nominal ledger for the year ended 31 March 20X6 The items below have a value greater than SNil Which are debit and which are credit balances?

4. The system of double entry book keeping relies upon accuracy of entries Which of the following combinations represent credit balances?

A) Property, plant & equipment, accruals, bank overdraft & discount received
B) Share premium, prepayments, payables & bad debts
C) Accruals, payables, drawings & discount allowed
D) Payables, accruals, share capital & loan stock(debentures)

5. Refer to the Exhibit.

The following information is available for the period for AC Limited, a manufacturing company:
The factory cost of goods completed for the period was

A) $230,000
B) $228,000
C) $232,000
D) $229,000

Solutions: