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1

An item of machinery cost $60 000. The machinery was later sold for $8000 and the loss on disposal was $3000. What was the accumulated depreciation on the machinery on disposal?

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

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

Open

2

The interest receivable account shows interest of $17 500 received during the year. Interest of $1600 is due at the year end. How will this be shown...

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

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

Open

3

On 31 December 2012 John’s statement of financial position showed the following. $ trade receivables 18 000 provision for doubtful debts On 31 December 2013 John decides to increase the rate of provision to 5%. His income statement shows a debit of $80 for the change in the provision. What is the value of John’s total trade receivables on 31 December 2013?

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

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

Open

4

A company sells goods at a mark up of 25%. The following information is available at the end of the financial year. goods in warehouse $300 000 goods sent on sale or return $200 000 (at invoice price) What was the value of closing inventory in the financial statements?

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

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

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

Open

5

After draft financial statements had been prepared, the following errors were discovered. Opening inventory was overvalued by $2000. Closing inventory was undervalued by $3000. The original gross profit was $90 000. What was the gross profit after the errors were corrected?

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

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

Open

6

At 31 December 2013 a business provides the following information. $ balance per cash book 790 credit balance per the bank statement 800 debit unpresented cheques The only other reconciling item between the cash book and the bank statement is bank charges recorded on the bank statement but not in the cash book. How much are the bank charges?

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

Open

7

A company accountant has prepared a reconciliation of the sales ledger control account with the sales ledger. $ balance per the control account 100 000 add: invoices not posted to the nominal ledger 10 000 cash received not posted to the sales ledger 5 000 balance per the sales ledger 115 000 Which figure for trade receivables should be shown...

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

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

Open

8

A trial balance at 31 December shows the following. debit $ credit $ sales ledger control account 54 000 1 500 purchases ledger control account 46 000 It is then found that an invoice for $1700, received from a supplier on 27 December, has not been entered in the accounting records. What is the correct figure for trade payables in the statement of financial position at 31 December?

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

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

Open

9

A trial balance failed to agree. The following errors have been discovered. Discounts allowed $54 had been posted to the credit of the discount received account as $45. The rent payable account had been undercast by $100. What was the effect of these errors on the trial balance?

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

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

Open

10

A new business decided to value inventory using AVCO. During the first week of trading they received the following deliveries. 1000 litres at $2.00 per litre 500 litres at $2.75 per litre What is the value of an issue of 1250 litres to production?

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

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

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

Open

11

A motor vehicle costing $8000 is depreciated by 25% per annum using the reducing balance method. After depreciating for two years it was sold for $4000. What is the loss on disposal?

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

Open

12

Which ratio would not assist in calculating the amount of stolen inventory?

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

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

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

Open

13

A sports club maintains a life subscriptions account. How should the balance on the account appear in the financial statements?

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

Open

14

X and Y are in partnership sharing profits equally. They admit Z who brings in $10 000 capital and takes 3 1 share of the profit. Goodwill is valued at $9000 but goodwill is not to be retained in the books of account. What is the balance on Z’s capital account immediately after his introduction?

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

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

Open

15

A sole trader withdraws goods for his own use. How does this affect his financial statements?

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

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

Open

16

Which items appear in a manufacturing account?

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

Open

17

A company has ordinary share capital of $80 000. Each share has a nominal value of $0.25. A dividend of $0.06 per share is paid. What is the total dividend paid?

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

Open

18

Daphne buys a non-current asset for $10 000. It has an estimated life of two years and a scrap value of $2000. She is considering whether to depreciate it using the straight line method or to use the reducing balance method at a rate of 60% per annum. Which statements are correct?

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

Open

19

A company issues for cash 50 000 shares of $5 each at a premium of $15 each and $300 000 4% debentures. By which amount will the net assets of the company increase?

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

4. Cost and management accounting (A Level)  →  4.4. Investment appraisal

Open

20

A shareholder sells some ordinary shares for more than he paid for them. What is the effect on the company statement of financial position?

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

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

Open

21

A business starts factoring its debts. Which effect does this have on its current ratio and its short term cash flow?

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

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

Open

22

A company provides the following information. profit for the year $ non-current asset turnover 15 000 4 times 16 000 3.5 times 17 000 3 times Sales have remained constant throughout the three years. Which statement correctly describes the trend?

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

Open

23

A business provided the following information. year 1: closing inventory $200 000; cost of goods sold $800 000. year 2: closing inventory is 25% higher than last year; cost of goods sold is 20% higher than last year. What is the inventory turnover in year 2?

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

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

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

Open

24

The table shows extracts from the financial statements of a company: $ non-current assets at cost 750 000 non-current assets at net book value 610 000 profit for the year 190 000 revenue 1 380 000 What is the non-current asset turnover?

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

Open

25

The direct material cost of 20 000 units is $8000. 400 direct labour hours are required at a cost of $6000. Overheads are absorbed at 150% of the cost of direct labour. What is the cost per unit?

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

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

Open

26

The following information is available. $ break even sales revenue 15 000 unit sales price fixed costs 6 000 What is the variable cost per unit?

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

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

Open

27

A business absorbs overheads at a rate of $10.50 per labour hour. The following information is available. budgeted overheads $68 250 actual overheads $66 175 actual labour hours What is the value of under or over absorbed overheads?

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

28

A company uses a direct labour rate of $5.40 per hour to absorb production overhead. Each unit of product manufactured requires four direct labour hours. The following information is available for a period. $ actual production overhead 518 400 under absorbed production overhead 32 400 What was the actual output of the product in the period?

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

29

A company sells a product for $12 per batch. The variable cost is $4 per batch. Fixed costs are absorbed based on a normal activity level of 100 batches at $3 per batch. What is the profit under marginal costing if the company makes and sells 125 batches?

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

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

Open

30

The following budgeted information is provided. February $ March $ April $ May $ budgeted credit sales 215 000 296 000 320 000 412 000 Trade receivables are allowed a one month credit period. What will be the total receipts received from trade receivables in April and May?

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

Open