CIMA Certificate in Business Accounting Practice Questions — All Questions

4 questions

Financial Accounting

In double-entry bookkeeping, an increase in an asset is recorded as a:

  • a.Both equally
  • b.Credit
  • c.Neither
  • d.Debit✓

Asset increases are recorded as debits.

Financial Accounting

The statement showing assets, liabilities, and equity at a point in time is the:

  • a.Cash flow statement
  • b.Income statement
  • c.Statement of financial position (balance sheet)✓
  • d.Trial balance

The statement of financial position (balance sheet) shows position at a date.

Financial Accounting

Profit for a period is broadly:

  • a.Sales only
  • b.Assets minus liabilities
  • c.Cash received
  • d.Income less expenses✓

Profit equals income less expenses for the period.

Financial Accounting

A liability is:

  • a.Something the business owns
  • b.Revenue earned
  • c.A present obligation to transfer economic benefit✓
  • d.Owner's investment

A liability is a present obligation arising from past events.

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