Here are the ACCA FA1 practice questions which will help you to clear all the concepts related to chapter (Business transaction and documentation), So here we go with the first question.

Q1. Business is an organization which provides _____for making profit?

  1. services and goods
  2. furniture
  3. business assets
  4. loan

Q2. Companies have usually _____?

  1. unlimited liability
  2. limited liability
  3. common liability
  4. fast paying liability

Q3. An organization which have specified or common ____ is an____.

Fill in the blanks

  1. entity, goal
  2. goal, entity
  3. business, company
  4. company, business

Q4. ___ is not constituted as business

  1. entity
  2. business
  3. company
  4. firm

Q5. Business is always____ from its entity

  1. combine
  2. separate
  3. legal
  4. joined

Q6. Dual effect in financial transaction means?

  1. every debit has credit
  2. every debtor has a creditor
  3. companies are usually limited
  4. partnership and sole trader

Q7. internal document means ___within business

  1. important
  2. not important
  3. confidential
  4. no use of

Q8. an ___ document can use be used outside the organization.

  1. internal
  2. external
  3. invoices
  4. quotation

Q9. staff timesheet is an example of ____

  1. internal document
  2. external document
  3. invoice
  4. quotations

Q10. letter of enquiry is an example of ___

  1. internal document
  2. external document
  3. invoice
  4. quotations
Note: Business transaction and documentation-FA1(ACCA) Must read it

Q11. demanding for payment is known as __

  1. invoice
  2. document
  3. quotation
  4. GRN

Q12. Usually invoice shows__

  1. bank balance
  2. invoice number
  3. NIC number
  4. GRN number

Q13. FOB stand for___

  1. the free on branch
  2. free on board
  3. free on bulk

Q14. credit note is usually send by __

  1. customer
  2. supplier
  3. company
  4. friend

Q15. debit note is sent by__

  1. supplier
  2. customer
  3. friend
  4. company

Q16. E stand for electronic commerce and commerce means__

  1. exchanging money
  2. exchanging goods
  3. online website
  4. electronic application

Q17. reduction in cash or amount payable when you pay for good, it means

  1. cash discount
  2. sales discount
  3. trade discount

Q18. reduction on goods you purchase usually when you purchase in bulk quantity.

  1. Trade discount
  2. cash discount
  3. sales discount

Q19. purchase goods on cash at 2000$, calculate amount of discount if trade discount is 10%

  1. 300
  2. 400
  3. 200
  4. 100

Q20. Honey buy a car with a list price of 50000$, trade discount is 10% and if honey pay within a week he will receive 10% settlement/cash discount. (this statement relates to Q21 as well)

Calculate trade discount

  1. 500
  2. 1500
  3. 2500
  4. 5000

Q21. Calculate cash discount

  1. 2500
  2. 3500
  3. 4500
  4. 5500

Q22. obligation which will have to pay to government whenever making any sale, this statement relates to

  1. income tax
  2. property tax
  3. sales tax
  4. utilities tax

Q23. Mumford sell an asset worth 70000, calculate sales tax if it is 13%

  1. 9400
  2. 9300
  3. 9200
  4. 9100

Answers (ACCA FA1 Practice Questions)

here you can find the answers

  1. services and goods
  2. limited liability
  3. goal, entity
  4. firm
  5. separate
  6. every debit has credit
  7. confidential
  8. external
  9. internal document
  10. external document
  11. invoice
  12. invoice number
  13. free on board
  14. supplier
  15. customer
  16. exchanging goods
  17. cash discount
  18. Trade discount
  19. 200 (2000*10/100)
  20. 5000 (5000*10/100)
  21. 4500 (50000-5000 trade discount, remaining 45000*10/100)
  22. sales tax
  23. 9100 (70000*13/100)

Hopefully you like this article, must share it with your friends.

Must read this chapter before doing questions it will help you to catch difficult points.

Business transaction and documentation-FA1(ACCA)

About Author

Naveen Rajput

Leave a Reply

Your email address will not be published.