QUESTION: 5

A company that is VAT-registered has sales for the period of $245,000 (excluding VAT) and purchases for the period of $123,375 (including VAT). The opening balance on the VAT account was $18,000 credit. The VAT rate is 17.5%.

What will be the closing balance on the VAT account at the end of the period?

$6,500 debit
$42,500 credit
$375 debit
$36,375 credit

Answer(s): B

Reveal Solution Next Question

QUESTION: 6

A business has expanded rapidly during the current year. As a result the accounting records have been building up and the management accountant is having problems producing reports for each department head.

Which of the following would be the best solution if introduced?

Extra working hours
Accounting codes
Prepare fewer reports
Department head produce their own reports

Answer(s): B

Reveal Solution Next Question

QUESTION: 7

Which of the following is not a book of prime entry?

Purchases daybook
Cash book
Sales ledger
Journal

Answer(s): C

Reveal Solution Next Question

QUESTION: 8

At the end of the year, the non-current asset register showed assets with a net book value of $170,300. The non-current asset accounts in the nominal ledger showed a net book value of $150,300.

The difference could be due to a disposed asset not having been removed from the non- current asset register, which had.

Disposal proceeds of $25,000 and a profit on disposal of $5,000
Disposal proceeds of $25,000 and a net book value of $5,000
Disposal proceeds of $25,000 and a loss on disposal of $5,000
Disposal proceeds of $10,000 and a net book value of $10,000

Answer(s): A

Reveal Solution Next Question

Free BA3 Exam Braindumps (page: 2)

QUESTION: 5

QUESTION: 6

QUESTION: 7

QUESTION: 8