---

---

1

Which item would result in a credit entry in an income statement?

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets

Open

2

A business prepares its financial statements on 31 December. Insurance premiums paid were as follows. date period covered $ January 2012 1 July 2011 to 31 December 2011 July 2012 1 January 2012 to 30 June 2012 January 2013 1 July 2012 to 31 December 2012 March 2013 1 January 2013 to 30 June 2013 Which amount should be shown...

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

3

A company has the following balances. $ trade receivables at 31 December 2012 125 400 provision for doubtful debts at 1 January 2012 1 800 During the year ended 31 December 2012 bad debts of $20 500 had been written off. The company provides for 5% of trade receivables at each year end. What is the doubtful debts expense for the year ended 31 December 2012?

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

1. Financial accounting (AS Level)  →  1.2. The accounting system

Open

4

The table shows information relating to the non-current assets of a business. $ net book value at the beginning of year 28 000 net book value at end of year 25 000 depreciation charge for the year 4 000 disposals at net book value 9 000 What is the cost of non-current asset additions?

1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets

Open

5

The table shows balances at the end of a year. $ expenses prepaid 6 000 expenses accrued 4 000 bank overdraft 11 500 trade payables 13 400 trade receivables 10 500 loan (2017) 20 000 What is the total of current liabilities?

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets

4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control

Open

6

On 1 July 2012, a business shows an accrual on the rent account of $600. During the following year, payments were made for rent as detailed below. $ 26 July 2012 paid 3 months rent to 31 July 2012 11 November 2012 paid 4 months rent to 30 November 2012 1 200 15 March 2013 paid 4 months rent to 31 March 2013 1 200 In preparing the rent account for the year ending 30 June 2013, which amount is to be shown...

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

7

Closing inventory has been overvalued. What is the effect on the financial statements?

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

Open

8

The table shows figures relating to a company’s banking transactions at 31 December. $ balance at bank per bank statement 22 650 uncleared lodgements 3 110 unpresented cheques 6 290 bank credit recorded twice by bank in error Which balance for cash at bank should appear in the statement of financial position at 31 December?

1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

9

A trial balance does not balance and a suspense account is opened. Later the following errors are found and the suspense account is cleared. A sales invoice for $1240 had been completely omitted from the books. Rent paid of $2600 was entered correctly in the cash book but as $6200 in the rent account. The purchases journal was undercast by $1980. What was the original balance on the suspense account?

1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification

1. Financial accounting (AS Level)  →  1.2. The accounting system

Open

10

The table shows information relating to a business for the year ended 31 December 2012. $ trade receivables at 1 January 2012 280 000 bad debts written off 8 500 cash from credit customers 796 000 cash sales 69 500 credit sales 718 000 increase in provision for doubtful debts 9 500 returns inwards on credit transactions 7 500 What is the balance on the sales ledger control account at 31 December 2012?

1. Financial accounting (AS Level)  →  1.2. The accounting system

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

Open

11

A draft income statement shows a profit for the year of $75 000. Discounts allowed of $4000 have been treated as discounts received and discounts received of $7000 have been treated as discounts allowed. What is the correct profit?

4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

12

A business allocates the following expenses to departments on the basis either of sales or floor area. advertising carriage out heating rent Which expenses are allocated on the basis of floor area?

2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods

4. Cost and management accounting (A Level)  →  4.1. Activity based costing (ABC)

Open

13

L and M are in partnership. Which item should appear in the partnership appropriation account?

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

Open

14

A new business was established with opening capital of $15 000. At the end of the year net assets were $20 000. During the year the proprietor’s drawings were $3000 and this resulted in an overdraft at the end of the year of $4000. What was the profit for the year?

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control

Open

15

The manufacturing account of a business includes the following. $ prime costs 143 260 production overheads 92 170 opening work-in-progress 5 720 closing work-in-progress 6 840 opening inventory of finished goods 29 480 closing inventory of finished goods 25 990 What was the cost of production?

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control

Open

16

S and T are in partnership sharing profits and losses in the ratio 3 : 2. Their fixed capital accounts have balances of S $80 000 and T $60 000. Interest is allowed on these at the rate of 6% per year. Profit for the year was $100 000. What is the division of profits between the partners?

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

Open

17

Which account is adjusted for the valuation of goodwill?

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

18

A business sells inventory at a mark up of 20%. Some inventory has been stolen. The following information is available. 1 January 2012 $ 31 December 2012 $ inventory 6 000 5 000 purchases for the year 101 000 revenue 120 000 What was the value of the inventory stolen?

2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

19

ABC Ltd purchased a non-current asset for $35 000 on 1 April 2009 and sold it on 1 October 2012 for $14 500. The company’s year end is 31 December and their policy is to make no charge for depreciation in the year of disposal but a full year’s charge in the year of purchase. The company uses the reducing balance method at the rate of 25% per annum. What is the profit or loss made, to the nearest $, on the disposal of the asset?

1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets

Open

20

The following is an extract from the statement of financial position of a company. $ ordinary shares of $0.25 each 35 000 6% cumulative preference shares 40 000 No dividend was paid on the preference shares last year but the directors propose to pay a dividend this year. The directors also propose a final ordinary share dividend of $0.05 per share. What is the amount of dividends to be paid?

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

Open

21

A shareholder in a company sells his shares to another person. What is the effect on the share capital account of the company?

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

Open

22

The following shows extracts from the statement of financial position of a company. at 30 September $ non-current assets 120 000 inventory 35 000 trade receivables 23 000 cash at bank (debit balance) 12 000 trade payables 15 000 bank loan repayable within 12 months 40 000 What is the acid test ratio?

1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

23

A company’s non-current asset turnover ratio decreases this year compared to last year. Which single factor could cause this to happen?

1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets

Open

24

A company’s financial statements show the following. $ issued share capital 300 000 profit from operations 160 000 profit after preference dividends 120 000 non-current liabilities 280 000 reserves 100 000 What is the company’s return on capital employed?

1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements

3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

25

What would increase the current ratio of a business?

1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets

Open

26

A business makes a single product. The following information is available. production total cost $ 600 units 800 units What is the fixed cost per unit?

2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods

4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control

Open

27

A company produces two different products which use the same material. One month there is a shortage of material and the company needs to reduce production of one product. Of which product should the company reduce production first?

2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods

4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control

3. Financial accounting (A Level)  →  3.1. Preparation of financial statements

Open

28

A factory has forecast total production overhead of $400 000 and forecast activity of 80 000 machine hours. In April actual overheads are $385 000 and actual activity is 70 000 hours. What is the level of under or over absorption in April?

2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods

4. Cost and management accounting (A Level)  →  4.1. Activity based costing (ABC)

Open

29

Which type of organisation would use process costing?

2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods

4. Cost and management accounting (A Level)  →  4.2. Standard costing

Open

30

Why does a company prepare a cash budget?

4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control

Open