Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520. The following transactions took place during April. April 2 Ann returned goods, $30, to Cindy. Ann bought goods, $210, from Cindy, and paid in cash. Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct?

7707_s20_qp_12

MCQ

2020

Paper 1, Variant 2

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At the end of his financial year, Marek was owed $200 for interest on a loan he had made to an employee. He recorded this in his financial statements. How did the interest on this loan affect Marek’s profit for the year and where was it recorded in his statement of financial position?

7707_s22_qp_11

MCQ

2022

Paper 1, Variant 1

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Which components of a statement of financial position do descriptions 1, 2 and 3 relate to?

7707_s23_qp_12

MCQ

2023

Paper 1, Variant 2

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The following ratios relate to the businesses of Ewa and Max. Ewa Max current ratio 2.2 : 1 2.4 : 1 liquid (acid test) ratio 1.4 : 1 1.0 : 1 An accounting student made the following statements. Ewa can meet her current liabilities from her current assets more easily than Max. Ewa can meet her current liabilities from her liquid assets more easily than Max. Max has insufficient current assets to meet his current liabilities. Max has sufficient liquid assets to meet his current liabilities. Which statements are correct?

7707_s23_qp_12

MCQ

2023

Paper 1, Variant 2

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A trader was preparing her statement of financial position at 30 June 2021. She had four bank loans. $ date repayable loan 1 December 2021 1 December 2022 1 September 2023 1 December 2025 What was the total amount of loans that should be recorded as non-current liabilities at 30 June 2021?

7707_s24_qp_11

MCQ

2024

Paper 1, Variant 1

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Which statement correctly describes the principle of realisation?

7707_s24_qp_12

MCQ

2024

Paper 1, Variant 2

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The financial year of Peter ends on 30 September. On 1 August 2020 Peter received rent $1000. This covered the period from 1 July to 30 November 2020. Which entry will be made in Peter’s statement of financial position on 30 September 2020?

7707_w20_qp_12

MCQ

2020

Paper 1, Variant 2

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At the end of his financial year on 31 August 2020 a trader had prepaid insurance. How will this appear in the insurance account and the statement of financial position at 31 August 2020?

7707_w20_qp_13

MCQ

2020

Paper 1, Variant 3

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Dev owns a business selling furniture. The following transactions took place during August 2020. Transaction Date Details $ August 9 Sold goods on credit to Petra Petra returned damaged goods to Dev Banked cash sales Petra settled her outstanding balance at 1 August by credit transfer after taking a cash discount of 5% On 1 August 2020, the balance on credit customer Petra’s sales ledger account was $940 debit. REQUIRED Complete the table to name each business document and book of prime entry for the following transactions in Dev’s accounting records. Transaction Business document Book of prime entry Prepare the account of Petra for August 2020 as it would appear in Dev’s sales ledger. Balance the account and bring down the balance on 1 September 2020. Dev Petra account Date Details $ Date Details $ Identify the section of Dev’s statement of financial position at 31 August 2020 in which the balance on Petra’s account would appear. Dev allows his credit customers a cash discount of 5% for prompt payment. He is considering reducing this to 2%. REQUIRED State one advantage and one disadvantage to Dev of this proposal. Dev is considering turning his business into a limited company. REQUIRED Advise Dev whether or not he should form a limited company. Justify your answer with two advantages and two disadvantages of forming a limited company.

7707_w20_qp_22

THEORY

2020

Paper 2, Variant 2

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When calculating the liquid (acid test) ratio, what is compared to the liquid assets?

7707_w22_qp_12

MCQ

2022

Paper 1, Variant 2

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