Which account is a nominal (income statement) account Which account is a nominal (income statement) account? A. Cash at bank B. Trade payables C. Sales revenue D. Owner’s capital Answer: C Expla

In the UK, VAT registered businesses charge output VAT on In the UK, VAT registered businesses charge output VAT on: A. Purchases of goods B. Sales of taxable goods and services C. Bank interest recei

Which document is sent by a supplier to a customer to demand payment Which document is sent by a supplier to a customer to demand payment? A. Purchase order B. Sales receipt C. Invoice D. Credit note

Double entry bookkeeping means: Double entry bookkeeping means: A. Every transaction affects only one account B. Every transaction has equal debit and credit entries C. Only revenues need dual entries

Which of the following is a current asset Which of the following is a current asset? A. Office building B. Machinery C. Trade receivables D. Long-term investment Answer: C Explanation: Current assets

Under UK accounting rules, which accounting basis is required for most businesses Under UK accounting rules, which accounting basis is required for most businesses? A. Cash basis B. Accrual basis C. T

What is the fundamental accounting equation What is the fundamental accounting equation? A. Assets = Liabilities - Equity B. Assets = Liabilities + Equity C. Assets + Liabilities = Equity D. Equity =

Which body sets the UK GAAP for small and medium-sized enterprises Which body sets the UK GAAP for small and medium-sized enterprises? A. HMRC B. Financial Reporting Council (FRC) C. International Acc

Which items affect the profit for the year in a UK business Which items affect the profit for the year in a UK business? A. Sales revenue B. Staff wages C. Utility bills D. Owner’s drawings Answ

Which documents are source documents in UK accounting Which documents are source documents in UK accounting? A. Sales invoice B. Purchase receipt C. Bank statement D. Trial balance Answer: ABC Explana

Which accounts normally have a debit balance Which accounts normally have a debit balance? A. Assets B. Expenses C. Income D. Liabilities Answer: AB Explanation: Assets and expenses have normal debit

Under UK accounting rules, which are qualitative characteristics of useful financial information Under UK accounting rules, which are qualitative characteristics of useful financial information? A. Re

Which of the following are examples of capital expenditure Which of the following are examples of capital expenditure? A. Purchase of a delivery van B. Office rent C. Installation of machinery D. Purc

Which are valid reasons for preparing bank reconciliations in the UK Which are valid reasons for preparing bank reconciliations in the UK? A. Identify errors in the cash book B. Detect bank errors C.

Which items are included in the income statement Which items are included in the income statement (statement of profit or loss)? A. Sales revenue B. Cost of sales C. Non-current assets D. Operating ex

Which of the following are current liabilities under UK GAAP Which of the following are current liabilities under UK GAAP? A. Trade payables B. Bank overdraft C. Long-term bank loan D. Accrued expense

In UK accounting, a credit note is issued to In UK accounting, a credit note is issued to: A. Increase the amount owed by a customer B. Reduce the amount owed by a customer C. Demand immediate payment

Which financial statement shows a business’s financial position at a specific date Which financial statement shows a business’s financial position at a specific date? A. Income statement B

Depreciation is the accounting process of Depreciation is the accounting process of: A. Valuing non-current assets at market price B. Allocating the cost of non-current assets over their useful lives

A trial balance checks A trial balance checks: A. Total debits equal total credits B. No accounting errors exist C. All transactions are correctly classified D. Assets are properly valued Answer: A Ex

Which account is a nominal (income statement) account Which account is a nominal (income statement) account? A. Cash at bank B. Trade payables C. Sales revenue D. Owner’s capital Answer: C Expla

In the UK, VAT registered businesses charge output VAT on In the UK, VAT registered businesses charge output VAT on: A. Purchases of goods B. Sales of taxable goods and services C. Bank interest recei

Which document is sent by a supplier to a customer to demand payment Which document is sent by a supplier to a customer to demand payment? A. Purchase order B. Sales receipt C. Invoice D. Credit note

Double entry bookkeeping means Double entry bookkeeping means: A. Every transaction affects only one account B. Every transaction has equal debit and credit entries C. Only revenues need dual entries

Which of the following is a current asset Which of the following is a current asset? A. Office building B. Machinery C. Trade receivables D. Long-term investment Answer: C Explanation: Current assets