This ZAI Quiz based on ACCA FA1 – Recording Financial Transactions. It contains 10 multiple-choice questions, each with four options. The correct answers are provided at the end.
ZAI Quiz: ACCA FA1 – Recording Financial Transactions
1. What is the main purpose of a trial balance?
A. To record all business transactions
B. To prepare the income statement
C. To ensure that debits equal credits
D. To calculate net profit
2. Which of the following is a liability?
A. Inventory
B. Accounts receivable
C. Accounts payable
D. Cash
3. What is the correct double entry for a credit purchase of inventory?
A. Debit Purchases, Credit Bank
B. Debit Inventory, Credit Trade Payables
C. Debit Trade Receivables, Credit Sales
D. Debit Cash, Credit Inventory
4. What is a petty cash book used for?
A. Recording large company purchases
B. Storing company cheque books
C. Recording small day-to-day expenses
D. Preparing financial statements
5. What is the effect of an error of omission?
A. Trial balance will not balance
B. Only debit side is affected
C. Only credit side is affected
D. Neither side of the trial balance is affected
6. Which document is used by a supplier to correct an overcharge?
A. Invoice
B. Purchase order
C. Credit note
D. Debit note
7. What type of account is ‘equipment’?
A. Expense
B. Asset
C. Liability
D. Income
8. Which of the following is an example of a source document?
A. Profit and loss statement
B. Invoice
C. Trial balance
D. Balance sheet
9. What does double-entry bookkeeping ensure?
A. All transactions are recorded twice
B. The income statement is accurate
C. Each transaction affects two accounts
D. The cashbook is up to date
10. What is recorded in the purchases returns day book?
A. Goods sold on credit
B. Goods bought for cash
C. Goods returned to suppliers
D. Goods returned by customers
✅ Answers:
- C. To ensure that debits equal credits
- C. Accounts payable
- B. Debit Inventory, Credit Trade Payables
- C. Recording small day-to-day expenses
- D. Neither side of the trial balance is affected
- C. Credit note
- B. Asset
- B. Invoice
- C. Each transaction affects two accounts
- C. Goods returned to suppliers
