CFE GROUP OF COLLEGES

FA 2 TEST CHAPTER 2
Q#1: The discount with variable consideration or uncertainty is known as ______________ .

Q#2: The discount received and given are treated in which financial statement.

 Statement of Financial Position

 Statement of Financial Performance
 Cash flow statement
 Statement of Changes in Equity
Q#3: A customer returned faulty goods to the supplier on which trade discount was reveived @
10%. The trade discount on returned goods will be
 Debited
 Credited
 Unchanged
 None of the above
Q#4: The day books are also called __________________________.
Q#5: A Contra is _______________
 Cancellation
 Addition
 Transfer
 None of above
A customer has an agreement to have trade discount @ 15% if he buys more than 1000
units. He also has an offer to have 3% settlement discount if paid within 1 Week, 2% if paid
within 2nd week & 1% IF PAID WITHIN 3RD Week and no discount after that.What will be the
values of payable if
Q#6: He pays all amount in 1st week.
Q#7: If pays all amount in 2nd week.
Q#8: If pays all amount in 3rd Week
Q#9: If pays all amount in 4th week
Q#10: If pays half amount in 1st Week and half in 2nd week.
Q#11: if pays half amount in 1st week and half in 3rd week.
Q#12: If pays one third in 1st week, one third in 2nd week & one third I 3rd week
Q#13: If pays one 4th in 1st,2nd,3rd & 4th week respectively.
Q#14: If Pays with Combination of Q#12 and sales Tax @ 16%.
Q#15: If Pays with Combination of Q#13 and sales Tax @ 16%.