ACCA FA2 Maintaining Financial Records Mock Exam

Welcome to the latest FA2 Exam style Mock Exam. This FA2 Mock Exam contains 20 MCQs. Please attempt this mock under exam conditions and avoid browsing. Our database has a lot of FA2 questions which means every time you attempt the mock, you’ll automatically be examined with new questions.

How to attempt the FA2 Mock Exam?

• Click the button below to get started.
• To best utilize the resource, attempt it under exam conditions.
• If you are unable to attempt the FA2 mock or can’t find new questions, consider leaving a comment below.
• There is a timer that automatically starts when you proceed with the ACCA FA2 exam mock.
• Finally, creating content takes time. Please show your support by sharing the resource with ACCA students.
• We also have different other ACCA resources including study materials and paper-specific guidance. Do check out the site.
• Best of luck for the FA2 Mock!

Start the Mock

Results

-

Congratulations! Try again as our database has a lot of questions and automatically tests new syllabus areas. OR, take a break and come back later. Don’t forget to share!

Ops!

Try again as our database has a lot of questions and automatically tests new syllabus areas.

OR, take a break and come back later.

Don’t forget to share!

#1. A sole trader had opening capital of 5000 and closing capital of 1500. During the period, the owner introduced 1000 additional capital and withdrew 2000 for personal use. What was the profit/loss for the period?

2500 Profit

2500 Profit

2500 Loss

2500 Loss

1500 Loss

1500 Loss

1500 Profit

1500 Profit

Opening Capital = 5000

Additional capital added= 1000

Drawings (2000)

Balancing Figure = (2500) Loss

Closing Capital = 1500

#2. Which one of the following assets may be classified as a non-current asset in the accounts of a business?

Tax Refund due next year

Tax Refund due next year

A bike for resale

A bike for resale

A computer used in the office

A computer used in the office

TWO newly hired interns

TWO newly hired interns

#3. Which statement correctly explains capital expenditure?

Expenditure on current assets including repairs

Expenditure on current assets including repairs

Expenditure on non-current assets including repairs

Expenditure on non-current assets including repairs

Acquisition of / expenditures on improvement of current assets

Acquisition of / expenditures on improvement of current assets

Acquisition of / expenditure on improvement of non-current assets

Acquisition of / expenditure on improvement of non-current assets

#4. A bank overdraft is ______?

An Asset

An Asset

A Liablity

A Liablity

An Income

An Income

A Non-current Asset

A Non-current Asset

#5. What is the primary purpose of SOFP?

To report the profitability of the business

To report the profitability of the business

To report Assets & Liabilities

To report Assets & Liabilities

To report budgets of the business

To report budgets of the business

To report equity of the business

To report equity of the business

#6. What happens when a sole trader withdraws money from the business?

Increase in Assets and Capital

Increase in Assets and Capital

Decrease in Assets and Capital

Decrease in Assets and Capital

Increase in Assets and Decrease in Capital

Increase in Assets and Decrease in Capital

Decrease in Assets and Increase in Capital

Decrease in Assets and Increase in Capital

Drawings effectively return part of their capital in the business to the proprietors.

#7. Which TWO of the following are revenue expenditures?

Purchase of a new machinery

Purchase of a new machinery

Upgrading the software used in the business

Upgrading the software used in the business

Repair costs for the month

Repair costs for the month

A machinery's part was broken and replaced

A machinery's part was broken and replaced

#8. Select the features of current assets.

Select TWO

Current assets are held for long term

Current assets are held for long term

The life of a current asset is less than a year

The life of a current asset is less than a year

Current asset cannot be easily converted to cash.

Current asset cannot be easily converted to cash.

Current asset can be converted to cash in a short period of time

Current asset can be converted to cash in a short period of time

#9. How would a business show a 10-year bank loan in its statements?

As a non-current liability

As a non-current liability

As a non-current asset

As a non-current asset

Split into current and non-current liability

Split into current and non-current liability

Split into current and non-current asset

Split into current and non-current asset

#10. Identify a source document in the following items.

Credit Note

Credit Note

Trial Balance

Trial Balance

Double entry

Double entry

Sales day book

Sales day book

#11. Purchase invoices are recorded in ____?

Sales day book

Sales day book

Purchase day book

Purchase day book

Trial balance

Trial balance

Account receivables

Account receivables

#12. The error in which a transaction is entered into the correct ledger account but a wrong amount is used is called ______?

Original Entry

Original Entry

Error of commission

Error of commission

Error of omission

Error of omission

Reversal Error

Reversal Error

#13. What is error of principle?

Correct amount recorded in incorrect account

Correct amount recorded in incorrect account

Incorrect amount recorded in correct account

Incorrect amount recorded in correct account

Transaction has been not recorded at all

Transaction has been not recorded at all

#14. Grapevine bought an asset for $500 but recorded it as $50 mistakenly. The total debit balance of trial balance is $100,000. How would you correct this error?

Add the difference of 450 to the trial balance

Add the difference of 450 to the trial balance

Subtract the difference of 450 from the trial balance

Subtract the difference of 450 from the trial balance

Subtract 500 from the trial balance

Subtract 500 from the trial balance

Add 50 to the trial balance

Add 50 to the trial balance

#15. Businesses make a payment to the tax authority when the output tax exceeds input tax. TRUE or FALSE?

TRUE

TRUE

FALSE

FALSE

#16. What are the TWO fundamental characteristics of financial information?

Materiality & Faithful representation

Materiality & Faithful representation

Relevance & Faithful representation

Relevance & Faithful representation

Timeliness & Understandability

Timeliness & Understandability

Honesty & Comparability

Honesty & Comparability

#17. What is a going concern?

Going concern is when the business has the required resources to continue operating indefinitely.

Going concern is when the business has the required resources to continue operating indefinitely.

Going concern is when the business lacks the required resources to continue operating indefinitely

Going concern is when the business lacks the required resources to continue operating indefinitely

#18. The owner of a sole trade has taken goods for personal use from the business. Which one is TRUE?

It must be recorded as the owner and business are two separate entities.

It must be recorded as the owner and business are two separate entities.

It needs not be recorded. Technically they are both the same.

It needs not be recorded. Technically they are both the same.

It needs not be recorded but the owner has to pay some cash

It needs not be recorded but the owner has to pay some cash

If it is a regular thing, then it needs not be recorded

If it is a regular thing, then it needs not be recorded

#19. Control accounts are maintained to confirm the overall value of sales. TRUE or FALSE?

TRUE

TRUE

FALSE

FALSE

Control accounts are set up for financial position items and not statements of P/L. Sales are recorded in P/L.

#20. In case of difference between the balance on the receivables ledger control account and the total of the list of balances, the balance of the control account is always correct. TRUE or FALSE?

TRUE

TRUE

FALSE

FALSE

They can both be correct.

Show my result