This is a ZAI Quiz based on ACCA FFA (Financial Accounting) — 10 multiple-choice questions with 4 answer options each. Answers are listed at the bottom.
ZAI Quiz – ACCA FFA (Financial Accounting)
1. What is the purpose of financial accounting?
A. To assist internal management decisions
B. To report financial performance to external stakeholders
C. To calculate tax payable
D. To plan production activities
2. Which of the following is NOT a qualitative characteristic of financial information according to the Conceptual Framework?
A. Relevance
B. Faithful representation
C. Conservatism
D. Comparability
3. Which of the following is classified as a non-current liability?
A. Trade payables
B. Accrued expenses
C. Bank loan repayable in 5 years
D. Bank overdraft
4. A trial balance is used to:
A. Calculate net profit
B. Check arithmetical accuracy of double entries
C. Prepare the cash flow statement
D. Determine depreciation
5. Which of the following errors will NOT affect the trial balance agreement?
A. Transposition error
B. Error of omission
C. Error of principle
D. Error of commission
6. Depreciation is best described as:
A. A method of asset valuation
B. A provision for replacement of an asset
C. The reduction in selling price of an asset
D. The allocation of cost of an asset over its useful life
7. Which financial statement shows a business’s financial position at a specific point in time?
A. Income Statement
B. Statement of Cash Flows
C. Statement of Financial Position
D. Statement of Changes in Equity
8. What is the double entry for a cash sale of $1,000?
A. Dr Sales $1,000 | Cr Bank $1,000
B. Dr Bank $1,000 | Cr Sales $1,000
C. Dr Sales $1,000 | Cr Cash $1,000
D. Dr Trade receivables $1,000 | Cr Sales $1,000
9. Which of the following is NOT an example of a capital expenditure?
A. Purchase of machinery
B. Legal fees for buying land
C. Repairs to existing equipment
D. Installation costs of a new asset
10. Which of the following is a limitation of financial statements?
A. They provide historical data
B. They are based on international standards
C. They are audited
D. They show profitability
✅ Answers
- B
- C
- C
- B
- B
- D
- C
- B
- C
- A
