ACCA Applied Skills Practice Questions — All Questions

Under double-entry bookkeeping, every debit must have an equal:

• a.Asset
• b.Credit✓
• c.Expense
• d.Liability

Each transaction records equal debits and credits.

The accounting equation is:

• a.Assets = Liabilities + Equity✓
• b.Assets = Revenue - Expenses
• c.Equity = Assets + Liabilities
• d.Cash = Assets - Revenue

Assets equal liabilities plus equity.

A trial balance is prepared to:

• a.Calculate tax
• b.Value inventory
• c.Check that total debits equal total credits✓
• d.Forecast cash

A trial balance verifies the ledger's debits equal its credits.

Depreciation spreads the cost of a non-current asset over its:

• a.Purchase month
• b.First year only
• c.Sale date
• d.Useful economic life✓

Depreciation allocates an asset's cost over its useful life.