CIMA Certificate in Business Accounting Practice Questions — All Questions
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4 questions
Financial Accounting
In double-entry bookkeeping, an increase in an asset is recorded as a:
- a.Credit
- b.Debit✓
- c.Neither
- d.Both equally
Asset increases are recorded as debits.
Financial Accounting
The statement showing assets, liabilities, and equity at a point in time is the:
- a.Statement of financial position (balance sheet)✓
- b.Income statement
- c.Cash flow statement
- d.Trial balance
The statement of financial position (balance sheet) shows position at a date.
Financial Accounting
Profit for a period is broadly:
- a.Cash received
- b.Assets minus liabilities
- c.Income less expenses✓
- d.Sales only
Profit equals income less expenses for the period.
Financial Accounting
A liability is:
- a.Something the business owns
- b.Owner's investment
- c.Revenue earned
- d.A present obligation to transfer economic benefit✓
A liability is a present obligation arising from past events.