Section 3. Financial accounting (A Level) for Accounting, A Level - revisedeck

3. Financial accounting (A Level)

A section of Accounting, 9706

Listing 10 of 734 questions

A summary of a trader’s bank statements for his first year of trading showed the following amounts. $ receipts from credit customers 25 000 takings from cash sales banked 82 000 The trader took $2000 a month from takings as drawings before banking them. Trade receivables at the year end amounted to $9500. What was total revenue for the year?

9706_s15_qp_13

MCQ

2015

Paper 1, Variant 3

View

The following information is taken from the rent account of a business. $ rent prepaid at the beginning of the year 1 400 rent paid during the year 13 900 rent accrued at the end of the year What is the rent expense for the year?

9706_s15_qp_13

MCQ

2015

Paper 1, Variant 3

View

The following information is extracted from the records of a business. $ at 1 January 2016 rent paid in advance 4 000 during the year ended 31 December 2016 rent paid 41 000 at 31 December 2016 rent paid in advance 7 000 How much will be charged for rent in the income statement for the year ended 31 December 2016?

9706_s17_qp_11

MCQ

2017

Paper 1, Variant 1

View

A trader had the following transactions in March 2017. $ cash sales for the month 6 900 credit sales invoiced in March 46 200 credit sales in March not yet invoiced customer orders received on 31 March 1 200 goods sent to a customer on 1 March on sale or return 1 400 What is the amount of revenue to appear in the income statement for March 2017?

9706_s17_qp_13

MCQ

2017

Paper 1, Variant 3

View

On 1 January a business has prepaid $800 for four months’ motor insurance. It also has an outstanding invoice for fuel of $140. During January it pays the fuel invoice and a further $600 for fuel. At 31 January it has an outstanding fuel invoice of $160. What is the charge for motor expenses in the income statement for January?

9706_s18_qp_11

MCQ

2018

Paper 1, Variant 1

View

A business provided the following information about telephone expenses for the year ended 31 December 2018. $ prepaid at 1 January 2018 accrued at 1 January 2018 bank payments during the year prepaid at 31 December 2018 accrued at 31 December 2018 What was the telephone expense to be included in the income statement for the year ended 31 December 2018?

9706_s19_qp_11

MCQ

2019

Paper 1, Variant 1

View

A company receives rental income from letting out two properties. Total rental income received from these two properties for the year ended 31 December 2019 was $55 000. Further information relating to these two properties was as follows. property 1 property 2 $ $ rent received in advance 1 January 2019 31 December 2019 rent receivable in arrears 1 January 2019 31 December 2019 What was the total amount of rental income shown...

9706_s20_qp_11

MCQ

2020

Paper 1, Variant 1

View

On 1 March a company has prepaid $3600 for 12 months’ travel costs. It also has an outstanding hotel bill of $180. During March it pays the outstanding hotel bill and a further $700 for airline tickets for the month. At 31 March it has an outstanding hotel bill of $220. What is the correct cost of travel in the income statement for March?

9706_s20_qp_12

MCQ

2020

Paper 1, Variant 2

View

A company receives rental income from letting out two properties. Total rental income received from these two properties for the year ended 31 December 2019 was $55 000. Further information relating to these two properties was as follows. property 1 property 2 $ $ rent received in advance 1 January 2019 31 December 2019 rent receivable in arrears 1 January 2019 31 December 2019 What was the total amount of rental income shown...

9706_s20_qp_13

MCQ

2020

Paper 1, Variant 3

View

Tariq owns a retail business but does not maintain full accounting records. All goods are purchased on credit, but all sales are on a cash basis. Tariq provided the following information for the year ended 30 September 2019. $ Trade payables 1 October 2018 4 980 30 September 2019 7 220 Payments to trade payables 70 300 Discounts received REQUIRED Calculate credit purchases for the year ended 30 September 2019. Additional information Assets and other liabilities 30 September 1 October $ $ Furniture and equipment at valuation 28 300 26 800 Inventory 8 080 7 410 Other receivables: rent prepaid – Cash at bank 1 960 3 360 Cash in hand Bank loan 15 000 12 000 Other payables: rent accrued 1 040 Summary of information taken from bank statements $ Receipts Cash takings banked 112 400 Additional bank loan 3 000 Payments Trade payables 70 300 Rent of premises 14 930 New furniture 5 200 Accountant’s fees Loan interest Drawings 25 150 Tariq took goods for personal use valued at cost $390 during the year. REQUIRED Calculate the depreciation of furniture and equipment for the year ended 30 September 2019. Additional information Tariq took some cash from the cash box as drawings during the year. However, no record was made of the amounts withdrawn. The following information is also available about cash. $ Cash sales 133 200 Wages of assistant 18 800 REQUIRED Calculate Tariq’s cash drawings for the year ended 30 September 2019. Prepare the income statement for the year ended 30 September 2019. Tariq Income statement for the year ended 30 September 2019 Workings: Explain the accounting concepts of: business entity substance over form. Additional information Tariq has become concerned about his business’s liquidity. He is considering two options. Option 1: reduce the inventory levels Option 2: delay payments to suppliers REQUIRED Advise Tariq which of these actions he should take. Justify your advice.

9706_s20_qp_22

THEORY

2020

Paper 2, Variant 2

View

Questions Discovered

734