Home / Practice / ACCA / Financial Accounting / C The use of double-entry bookkeeping and accounting systems
6 ACCA Financial Accounting questions with answers and explanations.
Printable worksheet with answer key
A business has assets of $80,000 and liabilities of $30,000. What is the equity?
Correct answer: $50,000
Equity = assets less liabilities = $80,000 - $30,000.
A business buys goods for resale for $2,500 on credit. What is the correct entry?
Correct answer: Debit purchases $2,500, credit payables $2,500
The expense or inventory increases (debit) and the liability to the supplier increases (credit).
Which document is created by the customer when goods arrive, to record what was actually received?
Correct answer: Goods received note
The customer's goods received note is compared with the purchase order and the supplier's invoice.
At the end of the accounting period, which balances are carried forward to the next period?
Correct answer: Asset, liability and equity accounts
Income and expense accounts are closed to profit or loss. Statement of financial position balances continue.
Which of these is a debit entry?
Correct answer: An increase in an expense
Debits increase assets and expenses. Credits increase liabilities, equity and income.
Which is a benefit of a cloud-based accounting system?
Correct answer: Data can be accessed from different locations through the internet
Cloud systems give flexible access, but data entry, backups and security still need managing.