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1

The table shows balances at the end of a year. $ expenses prepaid 6 000 expenses accrued 4 000 bank overdraft 11 500 trade creditors 13 400 trade debtors 10 500 loan (2015) 20 000 What is the total of current liabilities?

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

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

Open

2

The accounting year end of a business is 31 October. On 1 April the business rents out part of its warehouse for an annual rent of $6000. Payments were received in equal instalments on 1 April, 1 July, 1 October and 1 January. At 31 October what would the final accounts show?

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

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

Open

3

A business paid $15000 for electricity in the year. The opening prepayment was $1000 and the closing accrual was $2000. What was the charge for electricity for the year?

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

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

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

Open

4

A business makes a provision for doubtful debts equal to 5 % of its debtors. At 31 March 2008 the provision for doubtful debts was $850. At 31 March 2009 the debtors after the provision for doubtful debts were $17 100. How much is the increase in the provision for doubtful debts for the year ended 31 March 2009?

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

5

A business is separate from its owner. This results in only business transactions being recorded in the accounts. Which accounting principle applies?

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

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

Open

6

At 31 March the balance sheet of a company included the following. $ trade debtors 23 000 provision for doubtful debts 1 200 During April credit sales were $64 000 and cash sales were $256 000. Credit customers paid $56 840 net of a 2 % cash discount. What will be the trade debtors at 30 April?

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

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

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

Open

7

Stock has been damaged. The stock cost $1200. It would normally have sold for $1800. It can be sold for $1700 if repairs are undertaken at a cost of $600. To replace the stock would cost $1000. At what value should the damaged stock be shown...

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

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

8

A business has discovered several errors in its sales ledger. All the accounts in the other ledgers have been entered correctly. Which error will not affect the agreement of the trial balance?

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

Open

9

A trial balance fails to agree and the bookkeeper finds the following errors. A bank overdraft of $100 was shown...

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 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 during 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

11

The financial year of a manufacturer ends on 31 December. Finished goods are valued at factory cost plus 20 %. The following information is available. 1 January $ 31 December $ stock of finished goods at cost plus 20 % How much should be deducted from the stock of finished goods in the balance sheet at 31 December for unrealised profit?

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

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

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

Open

12

The stock records of a business show the following information for product X during January. amount in units cost per unit $ 1 Jan opening balance 15 Jan receipts into stock 30 Jan stock issued to production - What is the value of stock held at 31 January using the Last In First Out (LIFO) method?

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

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

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

Open

13

The summarised balance sheets for a business for two years are as follows. year 1 year 2 $ $ fixed assets 9 000 12 000 current assets 6 000 8 000 less current liabilities (5 000) (6 000) net assets 10 000 14 000 The drawings in year 1 were $5000 and in year 2 $3000. What is the net profit for year 2?

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

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

Open

14

X and Y are in partnership. Their profit and loss appropriation account shows the following. X $ Y $ total $ interest on capital 1 600 1 800 3 400 interest charged on drawings partners’ salaries 2 000 3 000 5 000 share of profit 8 000 12 000 20 000 What is the net profit before appropriations?

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

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

15

An extract from the accounts of a manufacturing company shows the following. $ depreciation of factory machinery 16 700 direct factory labour 476 200 factory cleaning costs 18 300 factory heat, light and power 22 600 factory supervisor’s salary 18 200 indirect factory labour 52 470 purchases of raw materials 184 300 stock of raw materials - opening stock 21 500 - closing stock 17 900 What is the prime cost of production?

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

16

An extract from a company’s balance sheet is given. $000 issued ordinary share capital issued preference shares profit and loss account share premium account 8 % debentures What are the ordinary shareholders’ funds?

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

Open

17

An extract from a company’s balance sheet shows the following. $000 issued ordinary shares of $0.25 each share premium account retained profits The company makes a rights issue of one new ordinary share for each three held, at a price of $0.30 per share. All shares were taken up. What does the new balance sheet show?

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

Open

18

A company’s Balance Sheet at 31 December 2008 includes: $ Ordinary shares of $1.00 12 000 Profit and Loss Account In January 2009, the company made a bonus issue of one share for every four held. In June 2009, the company made a rights issue at $1.60 of one share for every two held. By how much did these transactions increase the company’s bank balance?

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

Open

19

Which transaction would increase the current assets of a business?

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

Open

20

What will result in a reduction of working capital?

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

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

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

Open

21

A bank manager has reviewed the financial statements of a business. He notes that the liquidity ratio has fallen but that the sales for the year have remained constant. What explains this fall in the liquidity ratio?

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

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

Open

22

The following information relates to the final accounts of a business. $000 opening stock 2 470 closing stock 2 156 cost of sales for year 12 500 sales for year 21 660 What was the stock turnover in days?

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

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

23

A company has a share price that gives a dividend yield of 4 %. Earnings per share are $0.32 and half the earnings are paid out as dividends. What is the share price?

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

Open

24

When are the reported profits under marginal costing and absorption costing principles the same amount?

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

Open

25

Which cost will fall as production is reduced?

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

Open

26

A particular cost is classified as ‘semi-variable’. What effect will a 20 % reduction in activity have on the unit cost?

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

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

Open

27

A business uses job costing to calculate the cost of vehicle repair jobs. Overheads are allocated on an absorption costing basis. What is the effect of this method of allocation?

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

28

A company has a product which sells for $1 per unit. The variable costs are $0.60 per unit, and production of 200 000 units is planned. Fixed costs are $0.20 per unit at the budgeted production level. What is the break-even level?

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

29

How is total contribution calculated?

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

30

In January, a business had opening stocks of 25 200 units and closing stocks of 28 200 units. The profit calculated on marginal costing principles was $100 800 and that calculated on absorption costing principles was $120 300. What was the fixed overhead absorption rate per unit?

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