Acca f3 Financial Accounting (int) Study Text

Part G  Miscellaneous topics

  24:  Information technology

415

Quick Quiz 

1 

What is one of the advantages of computerised accounting?  

A Use 

by 

non-specialists 

B 

Need for security checks 

2 

What are the disadvantages?  

3 

What is an accounting suite?  

A 

Where accounting information is produced 

B 

A set of several different modules 

4 

What sort of data is input into a receivables ledger system?  

A Amendments 

B Transaction 

data 

C 

Adjustments to terms 

D 

All of the above 

5 

What is the open item method of processing?  

6 

What should be the four major objectives of a database?  

7 

What are the advantages of using a database to maintain non-current asset records?  

A 

Amount of detail 

B 

Ease of calculation 

C 

Both of the above 

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416

24: Information technology   Part G  Miscellaneous topics 

Answers to Quick Quiz 

1 A 

2 See 

Paragraph

 

1.1.2

. 

3 

B 

A set of several different modules. 

4 D 

5 

Payments are credited to specific invoices, so that late payment of invoices can be identified. 

6 See 

Paragraph

 

3.1

. 

7 

C 

The amount of detail that can be kept about each individual asset and the ease in analysing this 

information into different reports and calculations (eg depreciation, profit on sale). 

Now try the question below from the Exam Question Bank

Number

Level

Marks

Time

Q51

Examination

1

1 min 

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417

Exam question and answer 

bank

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418

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  Exam question bank

419

1 

Which of the following are differences between sole traders and limited liability companies?  

(1) 

A sole traders’ financial statements are private; a company’s financial statements are sent to 

shareholders and may be publicly filed

(2) 

Only companies have capital invested into the business  

(3) 

A sole trader is fully and personally liable for any losses that the business might make; a 

company’s shareholders are not personally liable for any losses that the company might 

make.

A 

1 and 2 only  

B 

2 and 3 only  

C 

1 and 3 only  

D 

1, 2 and 3  

(2 marks) 

2 

What is the role of the International Financial Reporting Interpretations Committee?  

A 

To create a set of global accounting standards  

B 

To issue guidance on the application of International Financial Reporting Standards  

(1 mark) 

3 

In times of rising prices, what effect does the use of the historical cost concept have on a 

company’s asset values and profit?

A 

Asset values and profit both understated  

B 

Asset values and profit both overstated  

C 

Asset values understated and profit overstated  

D 

Asset values overstated and profit understated.  

(2 marks) 

4 The 

IASB’s 

Framework for the preparation and presentation of financial statements gives qualitative 

characteristics that make financial information reliable.

Which of the following are examples of those qualitative characteristics?

A 

Faithful Representation, neutrality and prudence  

B 

Neutrality, comparability and true and fair view  

C 

Prudence, comparability and accruals  

D 

Neutrality, accruals and going concern  

(2 marks) 

5 

A company has made a material change to an accounting policy in preparing its current financial 

statements.

Which of the following disclosures are required by IAS 8 Accounting policies, changes in 

accounting estimates and errors in the financial statements?

1 

The reasons for the change. 

2 

The amount of the adjustment in the current period and in comparative information for prior 

periods.

3 

An estimate of the effect of the change on the next five accounting periods. 

A 

1 and 2 only 

B 

1 and 3 only 

C 

2 and 3 only 

D 

1, 2 and 3 

(2 marks) 

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420

Exam question bank  

6 

Which of the following statements are correct?  

(1) 

Materiality means that only items having a physical existence may be recognised as assets.  

(2) 

The substance over form convention means that the legal form of a transaction must always 

be shown in financial statements even if this differs from the commercial effect.

(3) 

The money measurement concept is that only items capable of being measured in monetary 

terms can be recognised in financial statements.

A 

2 only  

B 

1, 2 and 3  

C 

1 only  

D 

3 only  

(2 marks) 

7 

Which of the following explains the imprest system of operating petty cash?  

A 

Weekly expenditure cannot exceed a set amount.  

B 

The exact amount of expenditure is reimbursed at intervals to maintain a fixed float.  

C 

All expenditure out of the petty cash must be properly authorised.  

D 

Regular equal amounts of cash are transferred into petty cash at intervals.  

(2 marks) 

8 

Which of the following documents should accompany a payment made to a supplier?  

A 

Supplier statement  

B 

Remittance advice  

C 

Purchase invoice  

(1 mark) 

9 

The business entity concept requires that a business is treated as being separate from its owners 

Is this statement true or false? 

A True 

B False 

(1 mark) 

10 

A company’s motor vehicles at cost account at 30 June 20X6 is as follows:  

MOTOR VEHICLES – COST 

$

$

Balance b/f

35,800

Disposal

12,000

Additions

12,950

Balance c/f

36,750

48,750

48,750

What opening balance should be included in the following period’s trial balance for motor vehicles 

– cost at 1 July 20X6?

A $36,750 

DR 

B $48,750 

DR 

C $36,750 

CR 

D $48,750 

CR 

(2 marks)

11 

Sales tax should be included in the income statement of a registered trader. 

Is this statement true or false? 

A True 

B False 

  

 

(1 mark)

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