ACCA TESTS COMPILATION BUNDLE

Float correct answer: In the petty cash box there will normally be a small amount of cash available to make payments, this is called a float. Gains correct answer: This is non-standard income for the business. Their trade may be in selling clothing, but occasionally they may sell an asset, such...

Objectives of Internal Control correct answer: RORCS Risk management: Manage and control risk appropriately rather than eliminate it. Operations: Effectiveness and efficiency of operations. Reporting: ensure the reliability of internal and external reporting. Compliance: Assist compliance with ...

CHAPTER 4 - PROFESSIONAL ETHICS AND QUALITY CONTROL PROCEDURES correct answer: ° Professional ethics and ACCA code of ethics and conducts ° obtaining, accepting and continuing audit engagements Ethics correct answer: Ethics can be described as moral principles that govern a persons or groups...

Organisation correct answer: A social arrangement which pursues collective goals, which controls its own performance and which has a boundary separating it from its environment. Public sector organisations correct answer: Organisations owned or run by central or local government or government a...

Main Accounting equation correct answer: PROFIT = INCREASE IN NET ASSETS + DRAWINGS - CAPITAL INTRODUCED Main Accounting equation - increase in net assets correct answer: CLOSING NET ASSETS - OPENING NET ASSETS Net Assets correct answer: Net assets = Total assets - Total liabilities Gros...

What are the 3+1 stages of absorption costing? correct answer: 1. Allocation 2. Apportionment 3. Absorption = Production Cost 4. Under/over = Non prod OH Why would you use Absorption Costing? correct answer: Valuing Inventory Pricing Decisions Establishing profitability What are pros an...

Asset Equation - Assets = Capital + Liabilities Capital (Equity) Equation - Capital = Assets - Liabilities Assets Equation (Long) - Assets = Capital + Liabilities + Profit - Drawings Profit Equation - Profit = Total Revenue - Total Cost Gross Profit Equation - Gross Profit = Sales Revenu...

1. An Organization is a social arrangement which pursues collective goals, which controls its own performance. A. True B. False. correct answer: A 2. Organization is not preoccupied with performance. A. True B. False correct answer: B Organization is preoccupied with performance 3. Or...

Absorption costing correct answer: focuses on the total cost of producing one unit of output, includes fixed production overheads in valuation cost of production. Account correct answer: is a location where all items relating to one particular group are recorded. For example, cash items are r...

Financial Accounting correct answer: The production of financial statements for external users. They are public documents and will not include details about individual products' profitability etc. Management accounting correct answer: Management require much more detail and up-to-date informat...

Sole Trader correct answer: this is the simplest form of business entity where a business is owned and operated by one individual. With this form of entity there is no distinction in law between and owner and the business. Partnership correct answer: this is similar to a sole trader in that the...

IAS 1 Presentation of Financial Statements correct answer: States that a complete set of financial statements comprises: - A statement of financial position - A statement of profit or loss and other comprehensive income - A statement of changes in equity - A statement of cash flows - Accoun...

What are the two main type of business transactions correct answer: Cash or Credit. Debit correct answer: Is always on the left-side of the column Credit correct answer: Is always on the right-side of the column Debit To own/have AN ASSET INCREASES eg: new office furniture CAPITAL/A ...

How is revenue treated that is receivable 2 years after the goods are delivered? correct answer: The amount of revenue initially recognised is the amount receivable discounted to present value. Interst is then applied to the receivable as interest income over 2 years IFRS 9 requires investments...