ATT Accounting CBE Exam UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
What are the 2 purposes of an accounting system? - CORRECT ANSWER 1. to see if the
business is operating at a profit
2. to see if the business can meet its liabilities
What is the purpose of accounting from a tax perspective? - CORRECT ANSWER It is the
starting point for calculating tax
What businesses can use the cash basis for accounting? - CORRECT ANSWER 1. Sole trader
2. Partnership
What is the income threshold for using the cash basis? - CORRECT ANSWER £150,000
What businesses fall under the separate entity concept? - CORRECT ANSWER All businesses
What is on a balance sheet? - CORRECT ANSWER Assets, liabilities and capital
How do you calculate proprietor's funds? - CORRECT ANSWER Capital + profits (- losses) -
drawings
or
Assets - Liabilities
What is the name for how much the business owes the owner? - CORRECT
ANSWER Proprietor's funds?
What is on the profit/loss accounts? - CORRECT ANSWER Income and expenditure
ACTUAL QUESTIONS AND CORRECT
ANSWERS
What are the 2 purposes of an accounting system? - CORRECT ANSWER 1. to see if the
business is operating at a profit
2. to see if the business can meet its liabilities
What is the purpose of accounting from a tax perspective? - CORRECT ANSWER It is the
starting point for calculating tax
What businesses can use the cash basis for accounting? - CORRECT ANSWER 1. Sole trader
2. Partnership
What is the income threshold for using the cash basis? - CORRECT ANSWER £150,000
What businesses fall under the separate entity concept? - CORRECT ANSWER All businesses
What is on a balance sheet? - CORRECT ANSWER Assets, liabilities and capital
How do you calculate proprietor's funds? - CORRECT ANSWER Capital + profits (- losses) -
drawings
or
Assets - Liabilities
What is the name for how much the business owes the owner? - CORRECT
ANSWER Proprietor's funds?
What is on the profit/loss accounts? - CORRECT ANSWER Income and expenditure
