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1

A company decided not to capitalise the purchase of a stapler for use in its office. Which accounting concept was the company applying?

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

Open

2

Which book of prime entry is also used as a ledger account?

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

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

Open

3

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

4

A business purchased a new delivery van. The total amount paid is made up of the basic cost of the delivery and the following: changing the inside to carry tools and materials one year’s insurance and servicing painting the exterior with the business name Which items are included in the total to be entered in non-current assets?

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

Open

5

A business owner suspects that a loss of cash has occurred. He provides the data shown...

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

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

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

Open

6

The difference on a trial balance is entered in a suspense account. It is discovered that a discount received has been debited to the discount allowed account. Which journal entry corrects the error?

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

Open

7

Which items will be entered in the debit side of the purchases ledger control account?

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

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

Open

8

The bank column of a business cash book showed a debit balance of $25 000. The following was then discovered. $ direct debit payments not recorded in the cash book payments for sales made directly into the bank by customers but not recorded in the cash book bank charges not recorded in the cash book payment made by the business but not yet shown...

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

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

Open

9

At the year end a company discovers that some of its inventory is damaged. This inventory originally cost $2000 and to replace it would now cost $1900. It would normally sell for $2400 but can now only be sold for $2200 if repairs costing $400 are undertaken. What value of the damaged inventory should be shown...

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

10

The following information relates to rent receivable for the year ended 31 March 2020. $ 1 April 2019 rent owed by the tenants 1 April 2019 rent prepaid by the tenants rent received during the year 31 March 2020 rent owed by the tenants How much is the rental income entered in the income statement for the year ended 31 March 2020?

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

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

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

Open

11

A business has provided the following information. A provision for doubtful debts has been calculated as $1750. It is based on 5% of trade receivables after an irrecoverable debt of $4200 had been written off. What was the original amount of trade receivables before making these adjustments?

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

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

Open

12

A sole trader provides the following information. start of year $ end of year $ total assets 100 000 135 000 total liabilities excluding owner’s capital 35 000 40 000 During the year the owner took drawings of $18 000. What was the profit for the year?

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

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

Open

13

On the dissolution of a partnership, one of the partners takes a motor vehicle in part settlement of the amount due to him. How is this entered in the books of 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

At 31 December 2019 X, Y and Z were in partnership sharing profits and losses equally. At that date the net assets of the partnership were valued at $300 000 and X’s capital account balance was $70 000. On 1 January 2020 X retired. The net assets were then revalued upwards by $90 000. X left half of the amount due to him on retirement as a loan to the partnership. What was the value of the partnership’s net assets remaining after X’s retirement?

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

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

Open

15

Which items would appear in a partnership’s appropriation account?

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 item will affect the total equity of a limited company?

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

Open

17

A company makes a fully subscribed rights issue of 100 000 ordinary shares of $1 each at $1.20. The market value of a share at that date was $1.30. Half of the rights issue proceeds were used to repay a long-term loan. By how much did the company’s capital employed increase?

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

Open

18

Where are dividends paid during the year recorded in the financial statements of a limited company?

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

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

Open

19

Which ratios identify how well a business has utilised its resources?

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

20

A business provided the following information at the year end. $ non-current assets 75 000 current assets 25 000 current liabilities 18 000 profit for the year 28 000 There were no interest charges for the year. What was the return on capital employed?

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

Open

21

Anna is paid an hourly rate for each hour worked. She also receives an additional $0.25 for every unit produced in excess of 200 units a week. Which method of labour remuneration is used to pay Anna?

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

Open

22

A business uses the first in first out (FIFO) inventory system. The following information is available. date details units per unit value $ 1 March opening inventory 1 200 10.00 12 March purchases 2 000 10.20 22 March sales 3 000 15.00 26 March purchases 10.50 The inventory at 31 March could be sold for $10 800. What is the value of inventory to be included in the statement of financial position at 31 March?

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

23

The following data is available for the production department of a manufacturing company for a period. Overheads are absorbed on a direct labour hour basis. direct labour hours total overhead costs $ budgeted 96 000 242 880 actual 97 600 253 760 What is the over or under absorption of overheads for the period?

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

24

The records of a company showed the following. machining assembly total fixed overheads $150 000 $60 000 machine hours employee hours worked What is the hourly fixed overhead absorption rate for the machining department?

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

25

Which costs are included in inventory valuation under absorption costing?

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

What would cause a margin of safety of a product to increase?

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

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

Open

27

A company makes and sells a single product for $50 per unit. The variable cost is $16 per unit. Fixed costs have been absorbed based on a normal activity level of 1000 units at $4 per unit. What is the profit under marginal costing if the company makes and sells 2000 units?

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

Open

28

Which purpose is cost–volume–profit analysis used for?

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

The following budgeted information is available. units total cost $ 15 000 19 000 If production exceeded 9000 units, fixed costs would increase by $500. What is the total budgeted production cost for 10 000 units?

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

30

Which statement does not apply to an efficient system of business planning?

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

Open