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Fundamentals of Financial Accounting Questions 191–195 (page: 40)

Updated On: 9-Feb-2026

The total of the debit column of a trial balance is $800 bigger than the credit column.

Which of the following is the entry recorded in the suspense account?

  1. $800 Debit
  2. $1,600 Debit
  3. $1,600 Credit
  4. $800 Credit

Answer(s): D



MM does not maintain complete accounting records. The following information is available for the year ended 31 December 20X3:



The mark up on items sold by MM is 20%.

Which THREE of the following statements are true?

  1. Opening receivables is a debit balance
  2. Using mark-up means the profit is based on selling price
  3. Opening receivables is a credit balance.
  4. Opening inventory is a credit balance
  5. Using mark-up means the profit is based on cost
  6. Opening inventory is a debit balance.

Answer(s): B,C,D



Which ONE of the following organizations issues International Accounting Standards (IFRS's)?

  1. International Accounting Standards Committee Foundation (IASCF)
  2. International Accounting Standards Board (IASB)
  3. Standards Advisory Council (SAC)
  4. International Financial Reporting Interpretation Committee (IFRIC)

Answer(s): B



The formula for calculating payables days is

  1. cost of goods sold divided by payables x 365
  2. payables divided by purchases x 365
  3. purchases divided by payables x 365
  4. payables divided by cost of goods sold x 365

Answer(s): B



A ledger account is opened with a credit balance of $400. During the period the account is credited with $5,800 and debited with $6,500

What balance will open this account in the following period?

  1. $300 Credit
  2. $300 Debit
  3. $1,100 Credit
  4. $1,100 debit

Answer(s): B



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