These are ACCA F3 (FA/FFA) Financial Accounting MCQs for Part-C of the Syllabus “The use of double entry and accounting systems”.

These MCQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs until they have learned and finished the entire F3 (FA/FFA) Financial Accounting Chapter 4 – Double entry bookkeeping (II) and Syllabus Area Part-C “The use of double entry and accounting systems”.

All the questions are compulsory, so do not skip any.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Financial Accounting
Paper: F3 – MA/FMA
Chapter: Double entry bookkeeping (II)
Chapter Number: 04 of the Practice and Exam Kit
Syllabus Area: C – “The use of double entry and accounting systems”
Questions Type: CBE MCQs
Exam Section Type: Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part C of the Syllabus; “The use of double entry and accounting systems” of ACCA F3 (FA/FFA) Financial Accounting Module.

Time

These multiple-choice questions (MCQs) are not timed, allowing students to solve them without feeling any pressure and to pay proper attention to the questions.

Result

Students can see their result at the end of the Quiz. They can also be able to see the number of correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “( select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

0 votes, 0 avg

F3 - Chapter 4 - Part A - MCQs

Course: ACCA - FIA
Subject: F3 (FA/FFA) Financial Accounting
Syllabus Area: C - The use of double entry and accounting systems
Chapter in Kit: 04 - Double entry bookkeeping (II)
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

If you are using mobile, turn on the mobile rotation and solve the MCQs on wide screen for better experience.

REQUEST

Please rate the quiz and give us feedback once you completed the quiz.
Share with ACCA students on social media such as, Facebook Groups, Whatsapp, Telegram, etc.

1 / 18

Which of the statements is/are true?

A debit entry in the cash book will increase a bank balance in the accounts.

A debit entry in the cash book will increase an overdraft in the accounts.

2 / 18

You are given the following information:

Receivables at 1 January 20X3

$10,000

Receivables at 31 December 20X3

$9,000

Total receipts during 20X3 (including cash sales of $5,000)

$85,000

What are sales on credit during 20X3?

$86,000

$84,000

$79,000

$81,000

3 / 18

Which ONE of the following statements does NOT describe a way in which an effective accounting system facilitates the provision of useful accounting information?

By enabling transactions to be recorded as necessary to permit preparation of financial statements

By requiring authorisation in line with organisational policies

By preventing transactions from being processed inaccurately

By processing and recording transactions in accordance with accounting rules

4 / 18

Tin Co purchases $250 worth of metal from Steel Co. Tin Co agrees to pay Steel Co in 60 days' time.

From the list of tokens below, identify the tokens needed to record the correct entries in Steel Co's books.

TOKEN

Sales $250
Receivables $250
Purchases $250
Payables $250
Cash $250

DEBIT: Purchases $250, CREDIT: Cash $250

DEBIT: Purchases $250, CREDIT: Payables $250

DEBIT: Receivables $250, CREDIT: Sales $250

DEBIT: Sales $250, CREDIT: Cash $250

5 / 18

How is the total of the sales day book recorded in the nominal ledger?

Option B

Option C

Option A

Option D

6 / 18

A business sells $100 worth of goods to a customer, the customer pays $50 in cash immediately and will pay the remaining $50 in 30 days' time.

What is the double entry to record the purchase in the customer's accounting records?

DEBIT purchases $100, CREDIT payables $50, CREDIT cash $50

DEBIT cash $50, CREDIT payables $50, CREDIT purchases $50

DEBIT purchases $100, CREDIT cash $100

DEBIT payables $50, DEBIT cash $50, CREDIT purchases $100

7 / 18

Mew Ling has the following transactions:

Receipt of cash from R Singh in respect of an invoice for goods sold three weeks ago
Receipt of cash from S Kalu for cash sales

What are the ledger entries required to record the above transactions?

Option C

Option A

Option D

Option B

8 / 18

At 31 October 20X6 Roger's trial balance included the following balances:

Machinery at cost

$12,890

Accumulated depreciation

$8,950

Inventory

$5,754

Trade receivables

$11,745

Trade payables

$7,830

Bank overdraft

$1,675

Cash at bank

$150

What is the value of Roger's current assets at 31 October 20X6?

$15,974

$17,649

$13,734

$17,499

9 / 18

A trial balance is made up of a list of debit balances and credit balances.

Which of the following statements is correct?

Every debit balance represents an expense.

Liabilities are represented by debit balances.

Assets are represented by debit balances.

Income is included in the list of debit balances.

10 / 18

Which of the following statements is/are TRUE or FALSE?

Cash purchases are recorded in the purchases day book.
The sales day books is used to keep a list of invoices received from suppliers.

Statement 1 is TRUE and statement 2 is FALSE

Statement 1 is FALSE and statement 2 is TRUE

Both statements are TRUE

Both statements are FALSE

11 / 18

The following totals appear in the day books for March 20X8.

Sales day book

$40,000

Purchases day book

$20,000

Returns inwards day book

$2,000

Returns outward day book

$4,000

What are sales on credit during 20X3?

$18,000

$20,000

$22,000

$24,000

12 / 18

On 1 May 20X9 Marshall's cash book showed a cash balance of $224 and an overdraft of $336. During the week ended 6 May the following transactions took place.

May 1 Sold $160 of goods to P Dixon on credit.
May 1 Withdrew $50 of cash from the bank for business use.
May 2 Purchased goods priced at $380 from A Clarke, on credit, less 15% trade discount.
May 2 Repaid a debt of $120 owing to R Hill, taking advantage of a 10% settlement discount. The payment was by cheque.
May 3 Sold $45 of goods for cash.
May 4 Sold $80 of goods to M Maguire on credit, offering a 121/2% discount if payment made within 7 days. Marshall expects Maguire to take up this discount.
May 4 Paid a telephone bill of $210 by cheque.
May 4 Purchased $400 of goods on credit from D Daley.
May 5 Received a cheque from H Larkin for $180.
May 5 Sold $304 of goods to M Donald on credit.
May 5 Purchased $135 of goods from Honour Co by cheque.
May 6 Received a cheque from D Randle for $482.
May 6 Purchased $100 of goods on credit from G Perkins.

What is the total of the sales day book?
$_____

13 / 18

Smith Co has the following transactions:

Purchase of goods on credit from T Rader: $450
Return of goods purchased on credit last month to T Rouble: $700

What are the correct ledger entries to record these transactions?

Option A

Option D

Option C

Option B

14 / 18

An accountant has inserted all the relevant figures into the trade payables account, but has not yet balanced off the account.

Assuming there are no other entries to be made, other than to balance off the account, what is the closing balance on the trade payables account?

$575,235 CREDIT

$474,485 DEBIT

$575,235 DEBIT

$474,485 CREDIT

15 / 18

William's trial balance at 30 September 20X5 includes the following balances:

Trade receivables $75,943
Receivables allowance $4,751

How should these balances be reported in William's statement of financial position as at 30 September 20X5?

An asset of $75,943 and a liability of $4,751

A liability of $71,192

An asset of $71,192

A liability of $75,943 and an asset of $4,751

16 / 18

On 1 May 20X9 Marshall's cash book showed a cash balance of $224 and an overdraft of $336. During the week ended 6 May the following transactions took place.

What is the total of the purchases day book?
$_____

17 / 18

At 30 November 20X5 Jenny had a bank loan of $8,500 and a balance of $678 in hand in her bank account.

How should these amounts be recorded on Jenny's opening trial balance at 1 December 20X5?

CREDIT $8,500 and DEBIT $678

DEBIT $8,500 and CREDIT $678

CREDIT $7,822

DEBIT $7,822

18 / 18

Bert has extracted the following list of balances from his general ledger at 31 October 20X5:

Sales

$258,542

Opening inventory

$9,649

Purchases

$142,958

Expenses

$34,835

Non-current assets (carrying amount)

$63,960

Receivables

$31,746

Payables

$13,864

Cash at bank

$1,783

Capital

$12,525

What is the total of the debit balances in Bert's trial balance at 31 October 20X5?

$275,282

$267,049

$284,931

$283,148

Your score is

F3 (FA/FFA) – Chapter 4 – PART C – CBE MCQs – ACCA