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1

A customer paid a deposit in advance for goods to be supplied at a later date. How should this be recorded in the seller’s books?

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

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

Open

2

A company calculates a draft profit for the year of $98 000. This includes the profit margin of $3000 on goods sold on credit but not yet paid for. It also includes $500 profit taken on goods sold to a customer on a sale or return basis. What is the correct gross profit?

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

3

A trader provides the following information. $ prepaid rates at 1 October 2012 rent and rates paid during the year 16 200 accrued rates at 30 September 2013 prepaid rent at 30 September 2013 1 200 Which charge for rent and rates appears in the income statement for the year ended 30 September 2013?

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

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

Open

4

A business wishes to record the following transactions in its books of account. contra between sales ledger control account and purchases ledger control account depreciation charge for the year increase in provision for doubtful debts purchase of non-current asset on credit How many transactions require an entry in the general journal?

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

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

Open

5

At the beginning of the year a company has a provision for doubtful debts of $1000. At the end of the year the required provision is $2500. During the year debts of $1500 are written off and $100 is received in respect of a debt written off many years ago. What is the net amount charged to the income statement for bad and doubtful debts?

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

6

What would be treated as part of the capital cost of the purchase of a building?

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

7

Ryan purchased a van for $16 000 on 31 December 2010. It is his policy to apply 25% per annum reducing balance depreciation for each part of the year the asset is held. Ryan traded the vehicle in on 1 July 2013 for a $6150 reduction on the cost of a new vehicle. What was the profit or loss made on the disposal of the van?

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

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

Open

8

On 30 September 2012 a manufacturer’s current assets totalled $28 000. The next day, only two transactions took place. Inventory was bought for cash. The price of $2000 was subject to a trade discount of 20% and a cash discount of 5%. Payment was made immediately. A bad debt of $400 was written off. What was the total of current assets on 2 October 2012?

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

Open

9

The table shows information from the books of a business at 30 April 2013. details $ credit sales invoiced during financial year 79 000 goods sent to customers on 28 April 2013 and invoiced 4 May 2013 6 100 goods sent to customers during April 2013 on sale or return basis but not sold by 30 April 2013 8 300 What is the value of sales for the year ended 30 April 2013?

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

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

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

Open

10

The following information relates to a company’s non-current assets at 31 December. cost price $ disposal value $ motor vehicles 25 000 18 000 equipment 48 000 36 000 fixtures and fittings 12 000 5 000 The company has a serious cash shortage and will cease to trade within the next two months. What is the total value for non-current assets in the company’s statement of financial position at 31 December?

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

Open

11

Which statements about a bank reconciliation are correct?

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

Open

12

A trial balance does not balance and a suspense account is opened. On investigation, the following errors are found. The debit balance of $450 on the carriage outwards account has been brought down as $540. The purchases returns journal has been overcast by $100. A cheque for $50 received from Alan Green has been posted to the credit account of Brian Green. Rent received of $350 has been posted to the debit of rent paid account. What is the opening 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

13

In reconciling the sales ledger control account with the balances in the sales ledger, it was noticed that there was an error in the sales journal. This had been overcast by $740. In addition, the total receipts from customers of $940 were recorded in the control account as $490. Which correcting entry must be made?

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

Open

14

Which error would give rise to a difference in a trial balance?

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

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

Open

15

Which group of items are included in the prime cost?

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

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

Open

16

A business provides the following information for the year. $ prime cost 165 000 factory overheads 43 000 opening work in progress 6 000 closing work in progress 15 000 What is the cost of goods transferred to the trading account of the income statement?

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

17

Which statement about goodwill is correct?

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

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

Open

18

W, X, Y and Z are in partnership. What would 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

19

A trader uses the revaluation method of depreciation for loose tools. On 1 January loose tools were valued at $4620 and on 31 December at $5740. During the year $2010 was spent on purchasing new loose tools. Which amount was charged to the income statement?

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

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

Open

20

What is the reason for providing depreciation on non-current assets?

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

Open

21

When is a share premium account opened?

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

Open

22

On 1 May, a trader lost all of his inventory in a fire. He has figures for sales and purchases and wishes to calculate the value of the inventory lost. Which ratio should he use?

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

23

The following information is available about two similar businesses. X Y sales $30 000 $35 000 gross profit percentage 60% 62% net profit percentage 30% 8% Which business is better at controlling its costs?

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

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

Open

24

A business has a non-current asset turnover of two times, based on non-current assets valued at $250 000 at the end of 2011. The company uses the reducing balance method to depreciate its non-current assets at 25% per annum. In 2012 sales revenue increased by 20%. There were no purchases or disposals of non-current assets during the year. What is the non-current asset turnover for 2012?

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

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 company makes and sells one product incurring the following costs. 12 kilos of material at $3 per kilo 4.5 labour hours at $12 per hour production overheads $6 per unit selling overheads $5 per unit What is the total direct 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

27

A company receives an order for 10 000 units. The following information is available. units produced per machine hour labour costs per machine hour $25 raw material cost per unit $2 overheads recovered per machine hour $40 What is the cost of production?

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

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

Open

28

The costs of a company that annually sells 10 000 units are as follows. $ direct material 50 000 assembly labour 100 000 factory overheads 70 000 The normal selling price of each unit is $50. If it was reduced to $35, how many more units need to be sold to break-even?

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

A company manufactures four products. Gamma Rho Theta Zeta contribution per unit ($) material required 5 If there is only enough material to make three of the products, which product should be discontinued?

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

Open

30

Sales for January 2014 are expected to be $10 000 and these are expected to increase by $2000 each month. 10% of sales will be cash sales. Credit customers are expected to pay after one month. Which amount will be shown...

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

Open