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NBAA CPA(T) Foundation Accounting — practice by topic

Browse 27 questions across 4 Accounting topics. Choose what you want to revise, then open a question to check its answer and worked solution.

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Accounting topics

Accounting (27)Financial Accounting (27)Inventory (27)Merchandising Transactions (27)

Try a Accounting question

A firm of accountants sells advice rather than goods, so it holds no:Read the answer and worked solution →The time from spending cash to collecting payment from the customer is the operating:Read the answer and worked solution →A retailer that resells finished goods produced by a manufacturer is a:Read the answer and worked solution →Deducting cost of goods sold from net sales gives:Read the answer and worked solution →

Worked practice questions

A firm of accountants sells advice rather than goods, so it holds no:

  1. Inventory
  2. Insurance
  3. Interest
  4. Invoices
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Correct answer: A. Inventory

1. Service companies provide intangible services. 2. Nothing physical is bought in and resold. 3. So they hold no inventory. _Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._

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The time from spending cash to collecting payment from the customer is the operating:

  1. Cushion
  2. Cycle
  3. Ceiling
  4. Charter
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Correct answer: B. Cycle

1. It runs from cash out to cash back in. 2. A shorter one leaves the firm more stable. 3. That span is the operating cycle. _Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._

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A retailer that resells finished goods produced by a manufacturer is a:

  1. Merchandising company
  2. Measuring company
  3. Mediating company
  4. Monitoring company
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Correct answer: A. Merchandising company

1. It buys completed goods rather than making them. 2. It then sells them on to customers. 3. That is a merchandising company. _Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._

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How to practise

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