Which duties fall under HMRC in relation to UK accounting Which duties fall under HMRC in relation to UK accounting? A. Collecting VAT B. Collecting income tax and corporation tax C. Setting accountin

Which are valid methods of depreciation under UK GAAP Which are valid methods of depreciation under UK GAAP? A. Straight line method B. Reducing balance method C. Market value method D. Sum of digits

Which are types of accounts in the UK nominal ledger Which are types of accounts in the UK nominal ledger? A. Asset accounts B. Liability accounts C. Income accounts D. Personal accounts Answer: ABC E

Which are included in the cost of sales for a retail business Which are included in the cost of sales for a retail business? A. Purchase cost of goods sold B. Opening inventory C. Closing inventory D.

Which errors will cause a trial balance not to balance Which errors will cause a trial balance not to balance? A. Single entry error B. Unequal debit and credit postings C. Error of principle D. Trans

Which items are exempt from VAT in the UK Which items are exempt from VAT in the UK? A. Postal services B. Prescription medicines C. Standard retail goods D. Insurance services Answer: ABD Explanation

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

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

Accrued expenses are classified as Accrued expenses are classified as: A. Current assets B. Current liabilities C. Non-current assets D. Capital Answer: B Explanation: Accrued expenses are expenses in

Which ledger control account records amounts owed by customers Which ledger control account records amounts owed by customers? A. Payables ledger control account B. Receivables ledger control account

Gross profit is calculated as: Gross profit is calculated as: A. Sales revenue - total expenses B. Sales revenue - cost of sales C. Gross profit - operating expenses D. Sales + closing inventory Answe

Which of the following is a contra asset account Which of the following is a contra asset account? A. Trade receivables B. Provision for doubtful debts C. Bank loan D. Sales revenue Answer: B Explanat

A suspense account is used in UK accounting to A suspense account is used in UK accounting to: A. Record permanent income B. Temporarily hold entries when the trial balance does not balance C. Record

Under the Companies Act 2006, UK limited companies must prepare financial statements in accordance with Under the Companies Act 2006, UK limited companies must prepare financial statements in accordan

Which error will NOT be revealed by a trial balance Which error will NOT be revealed by a trial balance? A. Error of omission B. Single entry error C. Unequal debit and credit entries D. Transposition

What is the standard rate of VAT for most taxable goods in the UK What is the standard rate of VAT for most taxable goods in the UK (current)? A. 5% B. 12.5% C. 20% D. 0% Answer: C Explanation: The s

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