ACCA FA Practice Test

ACCA FA Double Entry, Documents, Sales & Cash Practice Questions

Double Entry, Documents, Sales & Cash makes up 5 of every 50 questions on a Tigertest ACCA FA practice test. Here are 10 of the 20 questions on it, each with the answer and the reason.

Updated 2026-11-10 by the Tigertest team. Based on ACCA's FA syllabus and study guide for 2026-27, with IFRS 18 formats. Original Section A style questions; Section B not included. Not affiliated with ACCA.

1. 1. A supplier sends a document to correct an overcharge on an invoice it issued earlier. This document is a:

   • A.Supplier statement
   • B.Credit note
   • C.Debit note
   • D.Remittance advice

   Answer: B. A credit note reduces the amount the customer owes. A debit note is sent by the customer to the supplier to request such a credit.

2. 2. A business sends a supplier a document stating the goods it wants, the quantities and the agreed prices. This document is a:

   • A.Delivery note
   • B.Statement of account
   • C.Sales order
   • D.Purchase order

   Answer: D. The buyer raises a purchase order to request goods and confirm prices. The supplier may then raise its own sales order, and it sends a delivery note with the goods.

3. 3. Which document does a supplier send with the goods, listing what has been sent, so the customer can check the delivery?

   • A.Delivery note
   • B.Remittance advice
   • C.Credit note
   • D.Purchase order

   Answer: A. The delivery (despatch) note travels with the goods and is signed by the customer as evidence of delivery. It carries no prices; the invoice follows separately.

4. 4. A business has assets of $184,600 and capital of $127,300. Its liabilities are:

   • A.$127,300
   • B.$67,300
   • C.$57,300
   • D.$311,900

   Answer: C. Assets = capital + liabilities, so liabilities = $184,600 - $127,300 = $57,300. Adding capital to assets instead gives $311,900.

5. 5. Opening capital was $62,000. The owner introduced $8,500 and took drawings of $14,200. Closing capital was $71,900. Profit for the year was:

   • A.$32,600
   • B.$9,900
   • C.$15,600
   • D.$1,400

   Answer: C. Closing capital = opening + capital introduced + profit - drawings, so profit = $71,900 - $62,000 - $8,500 + $14,200 = $15,600. Forgetting the drawings gives $1,400.

6. 6. Goods are bought on credit from a supplier. The double entry is:

   • A.Dr Purchases, Cr Payables
   • B.Dr Purchases, Cr Bank
   • C.Dr Inventory, Cr Revenue
   • D.Dr Payables, Cr Purchases

   Answer: A. Purchases (an expense) increase with a debit, and the amount owed to the supplier is a credit to payables. No cash moves until the supplier is paid.

7. 7. A credit customer returns faulty goods. The double entry is:

   • A.Dr Purchases returns, Cr Payables
   • B.Dr Receivables, Cr Sales returns
   • C.Dr Sales returns, Cr Bank
   • D.Dr Sales returns, Cr Receivables

   Answer: D. Sales returns reduce income, so they are debited, and the customer now owes less, so receivables are credited. No refund was paid, so the bank is not affected.

8. 8. A business registered for sales tax at 20% makes a credit sale with a gross value of $5,640, tax included. The sales tax is:

   • A.$564
   • B.$940
   • C.$1,128
   • D.$4,700

   Answer: B. Tax inside a gross amount is 20/120 of it: $5,640 x 20/120 = $940. Taking 20% of the gross figure ($1,128) treats the tax as if it were on top.

9. 9. In a quarter, sales tax on sales was $18,350 and sales tax on purchases was $11,620. The sales tax account shows:

   • A.$11,620 due from the tax authority
   • B.$6,730 owed to the tax authority
   • C.$6,730 due from the tax authority
   • D.$29,970 owed to the tax authority

   Answer: B. Output tax less input tax: $18,350 - $11,620 = $6,730. Output tax is higher, so the business owes the difference.

10. 10. A business that is not registered for sales tax buys equipment for $3,000 plus $600 sales tax. The equipment is recorded at:

    • A.$2,400
    • B.$600
    • C.$3,000
    • D.$3,600

    Answer: D. An unregistered business cannot reclaim input tax, so the tax is part of the cost: $3,000 + $600 = $3,600. A registered business would record $3,000 and a $600 receivable from the tax authority.