ACCA FA1 Exam Questions and Answers All Correct
What are the two main type of business transactions - Answer-Cash or Credit.
Debit - Answer-Is always on the left-side of the column
Credit - Answer-Is always on the right-side of the column
Debit
To own/have
AN ASSET INCREASES
eg: new o...
what are the two main type of business transaction
Written for
ACCA FA1
ACCA FA1
Seller
Follow
Scholarsstudyguide
Reviews received
Content preview
ACCA FA1 Exam Questions and Answer s All Correct What are the two main type of business transactions - Answer -Cash or Credit. Debit - Answer -Is always on the left -side of the column Credit - Answer -Is always on the right -side of the column Debit To own/have AN ASSET INCREASES eg: new office furniture CAPITAL/A LIABILITY DECREASES eg: pay an account payable INCOME DECREASES eg: cancel a sale AN EXPENCE INCREASES eg: incur advertising cost Left hand side - Answer -CERDIT To owe AN ASSET DECREASES eg: pay out cash CAPITAL/A LIABILITY DECREASES eg: buy good on credit INCOME INCREASES eg: make a sale AN EXPENCE DECREASES eg: cancel a purchase Right hand side Accounting Equation - Answer -Assets = Liabilities + Capital + Revenue - Expenses - Drawings Cash - Answer -Coins, currency (paper money) checks, credit card receipts, and money orders received from others, as well as money deposited in the bank. Cash transactions - Answer -Buyer pays cash to the seller at the time the goods or services are transferred.( simplest form of business) Credit transactions - Answer -Sale or a purchase which occurs some time earlier than cash is received or paid. What is a Business - Answer -An organization or economic system where goods and services are exchanged for one another or for money. What are the different types of business - Answer -Entity , Company , Firm Revenue (income) - Answer -The value of income supplied by customers. Expenditure (cost) - Answer -Decrease in owner's equity resulting from the cost of goods, fixed assets, and services and supplies consumed in the operations of a business. Profit (income) - Answer -Is the excess of income over expenditure. What is a invoice - Answer -Is a demand for payment What is a ledger - Answer -A book of accounts in which data from transactions recorded in journals are posted and thereby summarized. What is the purpose of the Accounting System - Answer -To record , summaries and present information contained in the documentation generated by transations Sales orders - Answer -A customer writes out an order or sign an order for goods or services they wish to buy Purchase order - Answer -A business place and order for with an business for the purchase of goods or services. Debit note - Answer -Is issued by a customer to a supplier as a means of formally requesting a credit note Credit notes - Answer -A credit note is effectively a negative invoice Trade discount - Answer -Reduction in the amount of money payable by a customer( during the negotiations ) Cash discount - Answer -Optional reduction in the amount of money payable by a customer
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £10.56. You're not tied to anything after your purchase.
