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1

A company does not include in the financial statements the value of skills gained by its employees from training programmes. Which accounting concept is being applied?

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

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

Open

2

The following transactions took place. owner’s withdrawal of inventory for private use purchase of new shop fixtures on credit writing off an irrecoverable debt Which transactions would be recorded in the general journal?

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

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

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

Open

3

The accounting year end of a company is 31 December. The company purchased a motor vehicle on 1 January 2020 and incurred the following costs. cost, $30 000, of which half was paid by cheque. The balance was paid by a bank loan. Loan interest for the year ended 31 December 2020 was $2500. delivery cost, $2000 engine improvement cost, $4000 repair and maintenance costs for three years, $5000 The motor vehicle was to be depreciated by 20% per annum using the straight-line method. What is the depreciation charge for the year ended 31 December 2020?

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

Open

4

A business sold a non-current asset. It had been purchased for $15 000 and had an estimated life of 10 years, with no residual value. It was depreciated using the straight-line method. It was sold after six years. Disposal costs were $1000 and there was a profit on disposal of $3000. What was the sale price?

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

Open

5

Which statements about a depreciation charge for the year are correct?

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

Open

6

The sales ledger control account of a business showed a debit balance of $26 400. This did not agree with the total of the sales ledger balances. The following items appeared in the sales ledger accounts but had been omitted from the sales ledger control account. a contra item, $340 discount allowed, $56 dishonoured cheque, $62 irrecoverable debt written off, $438 What was the correct balance on the sales ledger control account?

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

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

Open

7

Which are reasons for preparing a trial balance?

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

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

Open

8

The following information is available for the telephone account for the year ended 31 December 2020. at 1 Jan 2020 $ at 31 Dec 2020 $ payments and refund $ accrual prepayment payments made 19 000 amount refunded What was the telephone expense for 2020?

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

Open

9

A trader calculated his draft profit for the year as $16 000. The following items had not been adjusted. decrease in prepaid insurance, $400 increase in closing inventory, $1200 decrease in provision for doubtful debts, $120 increase in accrued rent receivable, $300 What was the profit for the year after adjusting for these items?

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

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

10

An item of capital expenditure has been incorrectly treated as revenue expenditure in the financial statements of a business. What is the effect of this error on the financial statements?

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

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

Open

11

The following information is available for a business. $ at the start of the year non-current assets 45 000 current assets 17 800 current liabilities 11 300 for the year drawings 5 000 profit for the year 6 950 What is the closing balance on the capital account at the year end?

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

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

Open

12

A trader did not keep full accounting records. The following information was available for 2020. $ trade payables on 1 January 32 785 trade payables on 31 December 43 630 payments to suppliers during the year 72 830 discounts received during the year 3 450 What was the value of purchases?

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

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

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

Open

13

How would the following transactions affect the owner’s equity of a sole trader?

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)  →  1.4. Reconciliation and verification

Open

14

A partner is retiring from a partnership business. What is the correct accounting treatment for goodwill if no goodwill is retained in the books of account?

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

3. Financial accounting (A Level)  →  3.3. Business acquisition and merger

Open

15

X, Y and Z are in partnership sharing profits and losses equally. At 31 December 2020, X had a capital account balance of $100 000 and a current account credit balance of $80 000. On 1 January 2021 X retired. Non-current assets and goodwill were revalued upwards by a total of $60 000. X left half the amount due to her on retirement as a loan to the partnership. The balance was paid to her by cheque. How much was X paid?

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

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

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

Open

16

A company had share capital of 100 000 ordinary shares of $1 each at the start of its financial year. The following transactions took place during the year. An issue of 50 000 ordinary shares at $1.40 each was made. A bonus issue of 15 000 ordinary shares of $1 each was then made. A 12% debenture of $100 000 was issued. A bank loan of $75 000 was repaid. What was the net cash inflow from these transactions?

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

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

Open

17

A company paid an ordinary share dividend of $15 000 in the year. Where would it appear in the 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

18

The equity of a limited company is shown...

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

Open

19

The following information is available. sales $250 000 purchases $120 000 average inventory $20 000 mark-up 25% What is the rate of inventory turnover?

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

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

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

Open

20

The trade receivables turnover of a business has been calculated for two years. turnover in days this year last year What is a possible reason for the change?

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

21

A manufacturing company employs 20 workers who are paid a basic rate of $30 per hour for a 40-hour week. To meet a special order, the workers each worked 50 hours and were paid a premium of 40% over basic rate for the overtime. What was the value of wages paid to meet the special order?

Open

22

A company paid the following telephone costs. month number of customer enquiries total cost $ 250 000 425 000 350 000 575 000 Telephone costs are a semi-variable cost. What would be the total telephone costs incurred for 305 000 enquiries?

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

Open

23

Which statements are correct?

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

24

A company’s fixed overheads details were as shown...

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

The following budgeted data is available for July 2021. $ direct labour ($20 per hour) 80 000 indirect labour 12 000 factory expenses 36 000 depreciation on machinery 30 000 depreciation on office equipment 18 000 administrative expenses 44 000 What is the budgeted overhead absorption rate per direct labour hour?

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

26

The following budgeted information is available for a business. $ revenue 650 000 variable costs 390 000 fixed non-production cost 150 000 fixed selling and distribution costs 90 000 What is its budgeted break-even sales revenue?

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

Open

27

Which statements relating to marginal costing are correct?

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

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

Open

28

A business makes and sells four products A, B, C and D. Which product should be produced first when labour hours are not sufficient to produce all four products?

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

29

When does cost–volume–profit analysis inform users about cost behaviour?

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

30

Which statement about budgets is correct?

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

Open