UNIVERSITY OF BUSINESS AND ECONOMICS

VIETNAM NATIONAL UNIVERSITY

PILOT TEST – 2025

UNIT: ACCOUNTING UNIT CODE: FAA4001-E DURATION: 90 minutes

Student Name: ID:

I. Multiple Choice Questions (4 marks):

Question 1: Information about an entity’s financial position is primarily provided in:
a. the statement of profit or loss. c. retained earnings.
b. the statement of financial position. d. the statement of cash flows.

Question 2: A sole trader is £5,000 overdrawn at her bank and receives £1,000 from a credit customer in
respect of its account. Which element(s) of the accounting equation will change due to this transaction?
a. Assets and liabilities. c. Assets only.
b. Liabilities only. d. Assets, liabilities and capital.
Question 3: An error of principle would occur if plant and machinery purchased:
a. was omitted from the accounting records. c. was debited to the equipment account.
b. was debited to the purchases account. d. was debited to the correct account but with the
wrong amount.

Question 4: Incorrectly recording the purchase of stationery by debiting the computer equipment account
would result in:

a. an overstatement of profit and an overstatement c. an overstatement of profit and an understatement

of non-current assets. of non-current assets.

b. an understatement of profit and an overstatement d. an understatement of profit and an

of non-current assets. understatement of non-current assets.
Question 5: An error of commission is one in which:
a. a transaction has not been recorded. c. one side of a transaction has been recorded in the
wrong account, and that account is of the same
b. one side of a transaction has been recorded in
class as the correct account.
the wrong account, and that account is of a
different class to the correct account. d. a transaction has been recorded using the wrong
amount.
Question 6: A business has opening inventory of £7,200 and closing inventory of £8,100. Purchases for the
year were £76,500, delivery inwards were £50 and delivery outwards was £180. What is the correct amount
for cost of sales?
a. £75,550. b. £75,650.
c. £75,830. d. £77,450.
Question 7: The gross profit margin is 20% where:
a. cost of sales is £100,000 and sales are £120,000. c. cost of sales is £80,000 and gross profit is
£16,000.
b. cost of sales is £100,000 and sales are £125,000.
d. cost of sales is £80,000 and sales are £96,000.

Question 8: Dani Ltd made a net profit of £50,000 after accounting for irrecoverable debts. During 20X6 Dani
increased its allowance for receivables by £1,500 and also recovered a debt previously written off amounting
to £3,500. What would the net profit have been prior to accounting for these items?
a. £52,000. c. £48,000.
b. £51,500. d. £55,000.
Question 9: A debit balance in the Allowance for Receivables Accounts
a. is the normal balance for that account. c. indicates that actual bad debt write-offs have
been less than what was estimated.
b. indicates that actual bad debt write-offs have
exceeded previous provisions for bad debts. d. cannot occur if the percentage of receivables
method of estimating bad debts is used.
Question 10: What are the long-term assets which do not have any physical existence?
a. Intangible Assets. c. Current Liabilities.
b. Tangible Assets. d. Current Assets.

Question 11: The double entry principle requires that each transaction must be recorded:
a. in at least two different accounts. c. in a journal and in a ledger.
b. in asset and liability accounts. d. first as revenue and then as an expense.
Question 12: Which of the following errors in the journal entry will not be detected by trial balance:

a. The debit part is overstated but the credit part is c. Both the debit and credit parts are overstated by
correctly recorded. the same amount.

b. The debit part is correctly recorded but the credit d. The debit part is correctly recorded but the credit
part is overstated. part is understated.
Question 13: Cost of sales is £14,000. Purchases for the period are £14,000, delivery inwards is £1,000,
delivery outwards is £1,500 and closing inventory is £13,000. What was the opening inventory figure?
a. £10,500. c. £12,000.
b. £11,500. d. £13,000.
Question 14: Land is generally shown on the balance sheet under:
a. Intangibles. b. Investments.
c. Property, Plant, and Equipment. d. Current Assets.
Question 15: The basic purpose of preparing a trial balance is:
a. To find out the profit of the business. c. To test the arithmetical accuracy of the ledger.
b. To show the financial position of the business. d. To calculate the net purchases of the business.
Question 16: The main Purpose of Financial Accounting is?
a. To Provide financial information to shareholders. c. To minimize taxes.
b. To maintain balance sheet. d. To keep track of liabilities.

Question 17: Boomerang Ltd. had 200 units in its inventory on 30 November valued at £800. In December, it
made the purchases and sales shown in the table below.
2/12 Purchased 1,000 @ £5.00 each.
5/12 Sold 700 @ £7.50 each.
12/12 Purchased 800 @ £6.20 each.
15/12 Purchased 300 @ £6.60 each.
21/12 Sold 400 @ £8.00 each.
28.12 sold 500 @ £8.20 each.
Using FIFO, which of the following is the inventory valuation?
a. £4,460 c. £4,620
b. £4,340 d. £3,500

Question 18: The statement that explains the causes of the difference between the cash book and bank
statement is called:
a. Bank Statement c. Income Statement
b. Financial Statement d. Bank Reconciliation Statement

Question 19: An amount of £750 is received from a bad debt previously allowed for within the accounts. What
is the double entry required to record this?

a. Debit Allowance for receivables, Credit c. Debit Cash, Credit Irrecoverable debt expense
Receivables
d. Debit Allowance for receivables, Credit
b. Debit Cash, Credit Receivables Irrecoverable debt expense

Question 20: Nigel has received the following telephone bills during his year end 31st December 20X7.

Bill period Amount £ Paid

Nov 20X6 - Jan 20X7 450 Feb 20X7
Feb 7 - Apr 20X7 480 May 20X7
 May 20X7 - Jul 20X7 410 Aug 20X7
Aug 20X7 - Oct 20X7 460 Nov 20X7
Nov 20X7 - Jan 20X8 465 Jan 20X8
How much should be included for the 20X7 telephone expense?
a. £1,810 c. £1,800
b. £1,815 d. £1,820

Question 21: According to the IASB’s Conceptual Framework, which of the following are enhancing
qualitative characteristics?

a. Comparability, understandability, timeliness, c. Consistency, reliability, measurability,

verifiability. timeliness.

b. Consistency, prudence, measurability, d. Materiality, understandability, measurability,

verifiability. reliability.
Question 22: During the reporting period Malcolm took items with a selling price of £280 for his own use. He
trades at a 40% mark-up and had a draft profit of £15,800 before making any adjustments for this matter. His
final profit is:
a. £15,520. c. £15,600.
b. £15,800. d. £16,000.

Question 23: Muse plc began trading on 1 January 20X8 and had zero inventories at that date. During 20X8 it
made purchases of £455,000, incurred delivery inwards of £24,000, and delivery outwards of £29,000.
Closing inventories at 31 December 20X8 were £52,000. What is the correct amount for cost of sales for the
year ended 31 December 20X8?
a. £456,000. c. £432,000.
b. £427,000. d. £531,000.

Question 24: Rossi had the following balances in its trial balance at 30 July 20X6:
£
Total receivables 81,000
Irrecoverable debts expense 2,500
Allowance for receivables as at 1 August 20X5 3,700
The company wishes to carry forward an allowance of £2,500.
What is the irrecoverable debts expense in the statement of profit or loss?
a. £1,300. c. £2,500.
b. £1,700. d. £4,200.
Question 25: To record estimated uncollectible accounts using the allowance method, the adjusting entry
would be a:

a. debit to Accounts Receivable and a credit to c. debit to Allowance for Receivables Accounts
Allowance for Receivables Accounts. and a credit to Accounts Receivable.

b. debit to Irrecoverable Debt Expense and a credit d. debit to Loss on Credit Sales and a credit to
to Allowance for Receivables Accounts. Accounts Receivable.

Question 26: Your firm's inventory valuation method is AVCO. On 1 June, there were 60 units in the inventory
valued at $12 each. On 8 June, 40 units were purchased for $15 each and a further 50 units were purchased for
$18 each on 14 June. On 21 June, 75 units were sold for $20 each. What is the value of the closing inventory
on 30 June?
a. $1,110. c. $900.
b. $1,010. d. $1,125.
Question 27: Which of the following is the correct accounting treatment of a trade discount received from a
supplier?

a. It is recorded as income in the statement of profit c. It is recorded in the cash payments.

or loss.
d. It is recorded in the journal.
b. It is deducted by the supplier from the list price
and the net invoice amount is recorded as an
expense and as a payable.

Question 28: A bank reconciliation statement for Worth Ltd at 31 December 20Y1 is in course of preparation.
In the light of the information given below, compute the final balance shown by the cash at bank account.

1 Overdrawn balance per bank statement is £1,019.

2 An amount of £250 credited in the bank statement under a standing order arrangement has not been entered
in the cash at bank account.

3 Cheques drawn and entered but not presented total £2,467.

4 Bank charges of £1,875 debited by the bank have not been entered in the cash at bank account.

5 Cash and cheques received and entered but not credited in the bank statement total £4,986.

6 An uncorrected bank error has resulted in a cheque for £397 debited to Worth's account in error. The final
balance shown by the cash at bank account, after making all necessary corrections, should be:
a. £6,831 DR c. £1,897 DR

b. £3,141 DR d. £228 DR

Question 29: On 31 January 20X8, Randall's cash at bank account balance for its current account showed a
credit balance of £150 which did not agree with the bank statement balance. In performing the reconciliation
the following points come to light. £
Not recorded in the cash at bank account

Bank charges 36
Transfer from savings account to current account 500

Not recorded on the bank statement

Unpresented cheques 116

Uncleared lodgements 630

It was also discovered that the bank had debited Randall's account with a cheque for £400 in error. This should
have been debited to Hopkirk's account. What was the original balance on the bank statement?

a. £200 DR c. £600 DR

b. £428 DR d. £1,600 CR

Question 30: Hatty has a cash at bank account balance of £380 credit on 23 July 20X7. She extracts a
transaction report from her electronic banking system that day which shows bank interest of £34 was credited
to her account, a direct debit for £240 in respect of telephone expenses was withdrawn and a cheque for £50,
which has already been recorded in the nominal ledger accounts, was presented. What is the adjusted cash at
bank account balance after taking account of these transactions?
a. £174 credit c. £636 credit
b. £586 credit d. £124 credit

II. Short Answer Questions: (similar MCQ but with answers) example:
Question: Dani Ltd made a net profit of £50,000 after accounting for irrecoverable debts. During 20X6 Dani
increased its allowance for receivables by £1,500 and also recovered a debt previously written off amounting
to £3,500. What would the net profit have been prior to accounting for these items?
III. Long Form Question: (Please fill in the answers on the answer sheet)

Skylar plc
The trial balance for Skylar plc as at 31 October 20X7 is shown below.
Trial balance of Skylar plc as at 31 October
20X7:
Share capital (par value is 50p) 70,000
Share Premium 40,000
Trade payables 43,000
Trade receivables 114,000
Allowance for Receivables 17,000
Accruals 1,000
5% bank loan repayable in 10 years 100,000
Cash at bank 100,000
Retained earnings 42,000
Property (freehold buildings) cost 87,000
Plant and equipment cost 69,000
Property (freehold buildings) – accumulated
15,000
depreciation at 1 November 20X6
Plant and equipment – accumulated
32,000
depreciation at 1 November 20X6
Interest 2,500
Sales 125,000
Purchases 75,000
Distribution costs 10,000
Administrative expenses 13,850
Inventories as at 1 November 20X6 12,350
Dividends paid 1,300
485,000 485,000
The following adjustments have yet to be accounted for:
(1) Depreciation has not yet been charged. There were no movements in non-current assets
during the year. Plant is depreciated at 10% straight-line on a monthly basis taking into
account the month of sale or purchase. Freehold buildings are depreciated over their useful life
of 40 years. Depreciation on plant is charged to cost of sales. Depreciation on freehold
buildings is charged to administrative expenses.
(2) The inventories at the close of business on 31 October 20X7 had a sales value of £43,750.
Goods are sold at an average mark-up of 25%.
(3) The company paid £6,000 insurance costs in June 20X7, which covered the period from 1
July 20X7 to 30 June 20X8. This was included in administrative expenses in the trial balance.
(4) Interest on the bank loan for the last six months of the year has not been included in the
accounts in the trial balance.
(5) A payment received from customer Broke plc for £4,000 on 27 October 20X7, which was
recorded in the accounting records of Skylar plc, has not been authorised by Broke plc’s bank.
A liquidator was appointed to Broke plc and he has confirmed that the payment will not be
reissued. Management have advised that Broke plc’s total outstanding balance of £10,000
should be written off as an irrecoverable debt and recorded in administrative expenses.
(6) One of Ford plc’s customers which owed £2,000 on 31 March 20X7 was declared
insolvent on that date. The liquidator does not expect to pay any money to creditors and the
amount is considered irrecoverable.
(7) During the year Skylar plc renewed its contract with haulage company Distributers plc.
The contract commenced on 1 September 20X7 and no payment has been made to date. The
annual contract fee is £12,000.
(8) All of Skylar’s goods come with a 12-month warranty. Management estimate that 2% of
these warranties will be exercised, and the cost of repair or replacement of these goods will be
£2,500 in total. The warranties expense should be presented in administrative expenses.
(9) During the year, the company issued a 1 for 5 bonues issue from share premium. This has
not been reflected in the account.
(10) The company wishes to adjust the allowance for receivables at the 31 October 20X7 to
$15,000.
(11) The income tax charge for the year has been calculated as £18,000.

The End./.
Lưu ý: Đề thi chính thức chỉ có 20 câu trắc nghiệm, 1 câu short answer
question, và 1 câu long form question (chỉ có 06 nghiệp vụ phát sinh).
Answer sheet:

Statement of profit or loss for the year ended 31 October 20X7

Revenue

Cost of sales

Gross profit

Distribution costs

Administrative expenses

Profit/(loss) from operations

Finance costs

Profit/(loss) before tax

Income tax expense

Profit/(loss) for year

Statement of financial position at 31 October 20X7

Non-current assets

Property, plant, and equipment

Land and buildings

Plant and equipment

Current assets

Inventories

Trade receivables

Prepayments

Cash and Cash equivalents

Total assets

Equity

Equity share capital

Share Premium

Retained earnings

Non-current liabilities

Borrowings

Current liabilities

Trade payables

Accruals

Provision

Income tax payable

Total equity and liabilities