Professional Documents
Culture Documents
F3 Mock 4 PDF
F3 Mock 4 PDF
F3
FREE ONLINE CBE BASED MOCK EXAM
50 Questions
Updated for
Exams in 2010
Prepared by | Hasaan Fazal
-2-
This publication contains only 50 questions provided free of cost. Students are invited to take part in this free
online CBE based test. This is a question paper of test to open up the answer sheet where students can
answers CLICK HERE
If you find this useful than you can buy more practice questions from www.acca-live.com or join ACCA LIVE’s
online classes where such material is provided free of cost and much more benefits. To know more about
online classes CLICK HERE
The answers after being checked will be emailed to student inbox along with marks obtained, in which areas
student is weak and correct answers.
If you have any question regarding ACCA then you can contact our support department by clicking HERE and
also you can get help from E – Teacher by clicking HERE
www.acca-live.com
-3-
1
Which of the following is NOT the likely effect that will take place if provision for bad debt is
increased?
2
Bulla ki Jana Co. has the following information relating to his bank account at May 31
3
In standing order:
4
Which of the following are NOT the examples of depreciation?
A. Rot, rust
B. Decay, erosion
C. Inadequacy, amortization
D. Theft, embezzlement
www.acca-live.com
-4-
Calculate:
7
X receives a credit note from one of his suppliers.
A. purchases supplier
B. purchases returns supplier
C. supplier purchases
D. supplier purchases returns
8
External users of financial statements obtain information regarding the entity on:
A. Regular basis
B. Periodic basis
C. Emergency basis
D. None of the above
NOTE: Assume tax rate of 10% for both input and output tax purposes
www.acca-live.com
-6-
13
A trader’s net profit for a financial year was calculated as $20 000. It was then discovered that the
stock at the end of the year was undervalued by $2000.
What will be the effect of correcting this error on the gross profit and net profit?
14
Which of the following entries would NOT affect the agreement of the totals in the trial balance?
(i) A bill for $800 for electricity has been omitted from the ledgers.
(ii) An invoice for plant repairs has been charged to the plant fixed asset account.
(iii) A cash sale has been recorded as debit cash sales, credit cash.
(iv) A credit note for $1500 for goods returned by a customer had been recorded in the correct
ledgers, but as $15,000.
A (i) only
B (i) and (ii) only
C (i), (ii) and (iii) only
D All of them.
15
At the beginning of Period 11, Zem Ltd had opening stock of 40 units of product X valued at $5.00
each. During Period 6, the following stock movements occurred:
Day 5 Sold 35 items for $6.00 each
Day 10 Bought 9 items for $7.00 each
Day 14 Sold 13 items for $8.00 each
Using the FIFO method of stock valuation, the closing stock at the end of Period 11 was
A $5.00
B $6.00
C $7.00
D $8.00
www.acca-live.com
-7-
16
Karachi and Lahore are in partnership. Interest is to be charged on partners’ drawings.
Which entry will record this, if they are following “fixed capital” system?
Debit Credit
A Appropriation Account partners’ current accounts
B partners’ current accounts Appropriation Account
C partners’ capital accounts Profit and Loss Account
D Profit and Loss Account partners’ current accounts
17
When there is inflation, the historical cost convention has the effect of
18
A firm has received the following business documents from X, a supplier.
$
October 5 invoice 650
October 10 invoice 120
October 12 credit note 150
October 22 invoice 230
November 4 invoice 790
There was no opening balance on X’s account and the firm made no payments to X during October.
19
A separate legal entity concept (for accounting purposes) applies to:
www.acca-live.com
-8-
20
On assets like coal mines which of the following word is used instead of depreciation?
A. Erosion
B. Decay
C. Depletion
D. Amortization
Debtor’s and related provision figures are 10,000 and 150 respectively.
Business received a credit note of Rs. 250 from one its buyer.
Bad debts not yet recorded amounts to 150
Provision for the year is to made at 1%
21: What is an aggregate figure that will be transferred to income statement after such adjustments?
22: What is the year end provision for doubtful debt?
23: What is the net figure of debtor’s that will be disclosed in the balance sheet?
www.acca-live.com
-9-
Debtors: 90,000
Provision for bad debts: 3150
Bad debts: 550
Discount allowed: 1230
Required:
24: Total amount of bad debts for the year
25: Provision of bad debt for the year
26: Net debtors for the year
27
Accounting systems which we can buy from a retailer are often termed as:
A. Tailor-made packages
B. Off-the-shelve packages
C. Beta packages
D. Retailer packages
www.acca-live.com
- 10 -
28
Which of the following statements point to DISADVANTAGES specifically of a computer system?
A. Softgear company is using an accounting package which they bought several years ago. System
is working flawlessly to this date, however now it needs up gradation due to recent changes in
accounting standards.
B. High rise systems, a software house manages all their sales and purchases on a computer and
they have not created any backup system as they are of the opinion that their system is near to
perfection there is no need to have an alternative system so they are keeping all their Sales and
Purchases records on that single system.
C. Old Mobile, a car manufacturer, has recently installed a new system. Chief accountant is of a
concern that as human makes mistake if they want to do something fast, same applies for the
computer system.
D. All of the above.
29
Mark marketing company sells different products through their commission based sales person.
Accountant wants to calculate the commission of one of the sales person using Spreadsheet but he is
having trouble in making up the formula. Criteria for calculating the commission is:
Sales person are given commission of 5% on total sales made by the sales person if total sales
made by him exceeds 50,000 in value in addition to 1000 promised commission.
Suggest a formula to accountant which he should input into the orange box
www.acca-live.com
- 11 -
33
Current accounts are preferred over fluctuating capital accounts because:
A. When partners are putting in greater amounts then the share of loss that they entitled to it acts
as warning.
B. When partners are taking out greater amounts then the share of loss that they entitled to it acts
as warning.
C. When partners are putting in greater amounts then the share of profit that they entitled to it
acts as warning.
D. When partners are taking out greater amounts then the share of profit that they entitled to it
acts as warning.
www.acca-live.com
- 12 -
34
Mr. Partshipner is a limited liability partner in firm. The financial statements of partnership are
extracted and his details relating to Mr. Partshernip are as follows for the year ended 31 March 20x9:
Current account balance: 21,000
Capital account balance: 50,000
Share in the profit: 7160
Salary: 6300
Proposed dividends:
Preference dividend of 10%
Ordinary dividend of 13%
Other information:
Retained profits from last year: 53,000
50% of redeemable preference shares are cumulative preference shares.
Transfers to general reserves 18,000
www.acca-live.com
- 13 -
38: How much ordinary dividend will be paid in the year 2003?
A. 3000
B. 2002
C. Nil
D. 2900
39: How much cumulative preference dividend will be carried forward at year ended 2003?
40: How much profit will be retained at the year ended 2005?
41
In case we purchased goodwill, the amount to be included in the balance sheet should be the
difference between:
A. The fair value of consideration received and accumulated fair value of net assets disposed off
B. The fair value of consideration given and accumulated carrying amount of assets acquired
C. The fair value of consideration received and accumulated carrying amount of assets acquired
D. None of the above
www.acca-live.com
- 14 -
Biohazard:
Cost: 268,000
Accumulated depreciation: 173,000
Depreciation rate: 15%
Depreciation method: Reducing balance
The current market value of Biohazard is significantly different from its current carrying amount
and company has decided to revalue its asset to 300,000 at the start of its financial year.
At year end company disposed Chernobyl, after charging depreciation for the year, for 150,000
Required:
42 Amount of revaluation reserve on biohazard at the year end?
43 Total depreciation for year ended that will be recorded in the income statement?
44 Profit or loss earned on sale of Chernobyl
[NOTE: Indicate loss with adding minus before number e.g. – xxx]
45 How much “excess depreciation” will be adjusted incase of Biohazard
www.acca-live.com
- 15 -
Company started commercial production on 1st January 2011. 1 year after its development has been
completed. The revenue that product earned during 2011, 2012 and 2013 is Rs. 10,000 milliion,
Rs.12,000 million and Rs. 5,000 million respectively.
However, because of fast adaption of new technology company faced strong competition from one
of its rival “Pak-tronics” and company has confirmed that its product will lose commercial life by the
year 2015.
Company has decided to amortize the development cost over its useful life.
46: Accountant is of the opinion that research expenditure was huge so keeping its materiality under
consideration we should capitalize the research cost. Do you think he is right?
47: What will be the carrying amount of capitalized development expenditure at the end of 2012?
48: What will be the amount of amortization for the year ended 2015?
49
A possible obligation depending on whether some uncertain future event occurs, or
A present obligation but payment is not probable or the amount cannot be measured reliably
50
Which of the following are fundamental principles of preparing a financial statement?
www.acca-live.com