Free BA3 Exam Braindumps (page: 27)

Page 27 of 99

Refer to the Exhibit.



A business writes a cheque using its overdraft balance to purchase new display shelving for its showroom

Which of the following is the dual effect?

  1. A
  2. B
  3. C
  4. D

Answer(s): A



Refer to the exhibit.



The trial balance of Monchu Partnership, as at 30 June 2006, has a suspense account.
Subsequent investigations revealed that:

(1) A payment of $352 to Mr. Tan was posted as $325.

(2) A remittance of $450 received from Arumugam was credited to Armits accounts.

(3) Salaries of $12000 have not been posted from the cash book.

Monchu suggested the following adjustments:

The appropriate journal entries are:

  1. (a), (c) and (e) only
  2. (b), (d) and (f) only
  3. (b) and (f) only
  4. (b), (e) and (f) only

Answer(s): C



A decrease in the allowances for receivables would result in:

  1. An increase in working capital
  2. A decrease in working capital
  3. An increase in liabilities
  4. A decrease in net profit

Answer(s): A



The statement of cash flow is a primary statement.

Which of the following gives the best description of the information provided to users by a statement of cash flow?

  1. Financial position
  2. Financial performance
  3. Liquidity, viability and adaptability
  4. Going concern status

Answer(s): C



Page 27 of 99



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