Online Access Free BA3 Practice Test

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?

• A.$36,375 credit
• B.$375 debit
• C.$42,500 credit
• D.$6,500 debit

Office equipment store Officework Ltd has made the following purchase from supplier GX:
50 printers costing £3,500 £6,400
worth ofA4 paper £101,500
worth of general stationary
This purchase has been made on credit. Which TWO of the following show how the transaction should be recorded in Officework Ltd's documents?

• A.£111,400 credit to payables
• B.£111,400 credit to stock
• C.£111,400 debit to stock
• D.£111,400 credit to receivables
• E.£111,400 debit to payables
• F.£111,400 credit to purchases
• G.£111,400 debit to purchases

Below is some information about Company TYY:
TYY offers a wholesale price for Product P of £650 per 100 quantity.
TYY offers regular customers a 35% trade discount.
On every 15th of the month, TYY offers a 15% cash discount on sales.
MPU wants to make a purchase from TTY for the first time, of900 Product Ps on the 15th of June. How much will MPU pay for this purchase?

• A.£3802.50
• B.£5,850.00
• C.£3,232.13
• D.£4,972.50

An invoice for stationery has been debited and credited to the correct accounts but has been duplicated.
This would result in:

• A.An understatement of profit and an understatement of current liabilities
• B.An overstatement of profit and an overstatement of current liabilities
• C.An overstatement of profit and an understatement of current liabilities
• D.An understatement of profit and an overstatement of current liabilities

Which ONE of the following statement is true?

• A.External auditors are responsible to detect fraud
• B.Audit trails are meant to trace fraud
• C.Internal auditors are appointed by the external auditors
• D.Fraud arises due to deliberate misrepresentation