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Which of the following should be classified as assets?
A. Payables
B. Motor Vehicles
C. Discounts Received
D. Tax refunds duePlease tell me which one is correct and the reason why it is correct?
And what is tax refunds due?
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and explanations
🙂I will answer your question although none of it is relevant for Paper MA. The question is a financial accounting question and Paper MA is on management accounting!!!!
If the question is referring to a limited company, then:
B is a non-current asset; D is a current asset
(A is a current liability, C is income)
Tax refunds due is money owed back to the company by the state, probably because they had paid too much tax.
If the question is referring to a sole trader, then only B is an asset because the business is not taxed, it is the individual owner who is taxed.
I do suggest that you watch my free lectures. They are complete free courses for Papers FA and MA, and cover everything needed to be able to pass the exams well.
This question is in FA1 Practice and revision Kit 1 Sep 2018 to 31 Aug 2019.
Mixed Bank 1–>Question 5.48
The correct answer is D, but there was no explanation.
According to Revision Kit, your answer is wrong.I will appreciate your help.
And Would you mind telling me where I can ask Financial Accounting questions?
Discount received is an income. It is credited,but you say it is a current asset.
How come?
Your answer thoroughly confused me.I did accidentally mistyped and I have now corrected it.
B and D are both assets. B is a non-current asset, D is a current asset and everything else I wrote in my reply is correct.
This question does not appear in the current edition of the BPP Revision Kit.
Either you mistyped the question here (for example, did it say just ‘asset’ or did it say ‘current asset’) or else there was a mistake in the Revision Kit (although unfortunately you cannot now access the error sheet on the BPP website because yours is not the current edition).
You should ask Paper FA questions in the Paper FA Ask the Tutor Forum.
No sir!
I checked the question once again. I have not mistyped it. In this case two answers can be correct B and D. What do you reckon is the revision Kit wrong?I am afraid I may face such question in exam and wonder what to choose.
If the question specifies to choose only one answer, then there is an error in your kit because both motor vehicles and was refunded due are assets as I have already explained. That maybe the reason for the question not appearing in the current edition of the Revision Kit.
Obviously not all questions in the exam are just choosing one correct answer, although obviously that is what was required here (even though there is an error and there are two choices that are correct).
Thanks a lot!
Yh only one answer should be selected. The kit was wrong. I was right then.
Sorry for lengthening the discussion.
As You said, there may be some questions in exam which have two correct answers,but is it possible to select two options in exam?
I take FA1 exam two days later. will there be some questions for which two answers are correct? To be honest, I did not see a single question in revision Kit for which two options should be selected.In the exam the question will make it very clear whether you have to choose just one option or more that one option.
There are many types of questions that can be asked in the exam – not just multiple choice questions.
You can find examples of the different types of questions on the ACCA website:
https://specimen.accaglobal.com/flk.htmlThanks a million Sir!
You help me a lot.
Now I Know that there are not only multiple choice quesions, but also other types of questions that can be asked in exam, but I think in FA1 all the questions are multiple choice.
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