ACA Accounting (Certificate Level)

Question 1

Under FRS 102, which of the following is NOT a component of the statement of financial position?

Accepted Answer

Revenue

Answer

Assets

Answer

Liabilities

Answer

Equity

Question 2

A UK company purchases inventory for £12,000 plus VAT at 20%. The company is VAT-registered. At what value should the inventory be initially recorded?

Accepted Answer

£12,000

Answer

£14,400

Answer

£12,400

Answer

£10,000

Question 3

Which of the following errors would cause the trial balance NOT to balance?

Accepted Answer

Posting £500 to the correct debit account but £50 to the correct credit account

Answer

Recording a purchase twice in both the debit and credit entries

Answer

Omitting a transaction entirely from the books

Answer

Recording a sale in the wrong revenue account

Question 4

Under the UK Companies Act 2006, what is the minimum number of directors required for a private limited company?

Accepted Answer

One

Answer

Two

Answer

Three

Answer

None

Question 5

A business has opening capital of £50,000, makes a profit of £15,000, and the owner withdraws £8,000 in drawings. What is the closing capital?

Accepted Answer

£57,000

Answer

£65,000

Answer

£42,000

Answer

£73,000

Question 6

Which accounting concept requires a business to be treated as a separate entity from its owners for accounting purposes?

Accepted Answer

Business entity

Answer

Going concern

Answer

Accruals

Answer

Materiality