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Fundamentals of Financial Accounting Questions 96–100 (page: 21)

Updated On: 9-Feb-2026

Which of the following are likely examples of accrued expenses:

  1. Water bill
  2. Purchase order
  3. Electricity bill
  4. Interest on loans
  5. Sales tax

Answer(s): A,C,D



Which THREE of the following are improved by the use of accounting standards?

  1. Consistency
  2. Cash flow
  3. Comparability
  4. Performance
  5. Fair presentation
  6. Position

Answer(s): A,C,E



UVW is preparing its manufacturing account for the year ended 30 June 20X7 The following information is available:



What is UVWs prime cost for year ended 30 June 20X7?

  1. $352,000
  2. $344,000
  3. $389,000
  4. $397,000

Answer(s): A



Select the THREE INCORRECT statements from the following list of statements about memorandum accounts:

  1. A memorandum ledger is an account that is not part of the bookkeeping system as a whole
  2. All transactions in a memorandum account have to be balanced with a corresponding entry in the nominal ledger
  3. A memorandum account is part of the nominal ledger
  4. A memorandum account is a daybook

Answer(s): B,C,D



CORRECT TEXT

Refer to the Exhibit.



You have been asked to prepare the sales ledger control account for the month of May, using the following information:

According to the accounts the opening receivables balance was $ 66,250

What is the closing receivables balance as at the end of May?

  1. See Explanation section for answer.

Answer(s): A

Explanation:

CORRECT TEXT IS: $61867



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