As our reader knows that we are posting a series of articles for ACCA exam practices, so here is another article for our reader in which they will solve some ACCA FA1 exam questions. So let’s start with the first question.
ACCA FA1 exam questions
1. A business has a bank overdraft of $350 and $50 cash in hand at the end of the accounting period.
What is the balance for the next accounting period?
- bank debit and cash credit
- bank credit and cash debit
- cash debit and bank debit
- cash credit and bank credit.
2. A sole trader has an opening capital of $20000 and a closing capital of $23000. during a period the owner introduced capital of $4000 and withdrew $15000 for his own use.
What was the sole trader’s profit or loss during the accounting period?
- $8000 profit
- $14000 profit
- $15000 profit
- $22000 profit.
3. What does a credit entry usually represent?
- Asset and income
- Liabilities and income
- Asset and expense
- Liabilities and expenses.
4. What is the double entry to record the purchase of plant and machinery for cash?
- Debit plant repairs and credit cash
- Plant and machinery debit and cash credit
- Debit plant repairs and credit A/P
- Plant and machinery debit and A/P credit.
5. What is the double entry to record the introduction of capital into a business bank account by the owner?
- Drawings debit and cash credit
- Cash debit and drawings credit
- Cash debit and capital credit
- Capital debit and cash credit.
6. A business buys goods on credit from a supplier and will pay one month later. When the payment is made, what is the double entry required to record this?
- Cash account debit and A/R credit
- Cash account debit and A/P credit
- A/R debit and cash account credit
- A/P debit and cash account credit.
7. Which of the following is a liability?
- Capital introduced
- Bank Overdraft
- Bank credit and cash debit, So the correct option is (2)
- Credit usually represents liability and income, so the answer is (2)
- (3) (1 is our capital 2 is an asset and 4 is drawings and it is the part of capital).
What is the full of FA1 in ACCA?
FA1 full form in ACCA is Recording Financial Transaction.
What are FA1 and MA1 in ACCA?
FA1 is part of financial accounting whereas MA1 is part of management in the ACCA, the full form of MA1 is management information.
What are the passing marks of FA1 ACCA?
The passing marks of the whole ACCA exam are 50%.
Which statement in the financial records of the accounting system shows the profit and loss of the business?
The statement of profit and loss and other comprehensive income shows the balance of profit and loss in the accounting system, the other name of this statement Income statement.
Which statement in the accounting records shows the financial position of the company?
The statement of the financial position shows the financial status of the company, the other name of this statement is the balance sheet.
Which statement in accounting records is used when combining the records of the two companies?
The statement of consolidation is used when making two or more companies account in a single statement.
Which statement is used in the accounting system to show the circulation of cash?
A statement of cash flow is used to show the movement of the funds in the business. Positive cash is a sign of positive results in a business. It shows how much cash is in a company’s account. The more cash a company has the more chance of investment it has.