Cambridge Past Paper Questions
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A business has the following budgeted and actual results for a period. $ budgeted fixed overheads 354 000 actual fixed overheads 360 000 under-abso...
What are the main purposes of budgeting? 1 to control expenditure 2 to forecast future expenditure 3 to determine company strategy
Which accounting treatments illustrate the use of the matching concept? 1 comparing the receipts and payments in the cash book to obtain the balan...
Which item should be treated as capital expenditure?
During the year ended 31 December 2012 a business purchased a vehicle for $23500. On 30 September 2015 it was sold for $3500. Depreciation was char...
Why is a sales ledger control account used? 1 to control discounts received 2 to ensure credit customers pay promptly 3 to provide a trial balanc...
A purchases ledger control account was prepared but contained a number of errors. purchases ledger control account Balance b/d $45750 Credit purc...
A suspense account shows a debit balance of $350. What could have caused this?
The following balances related to Ladha's business. At 31 March 2016: total assets $388000, total liabilities $84000, net assets $304000, drawings...
A trial balance showed a provision for doubtful debts as $1350. Trade receivables were $50320 which included a debt of $500 which was irrecoverable...
A business provides the following information. Revenue $140000; opening inventory $22000; closing inventory $24500; purchases $120000. Goods are ...
The draft financial statements of a business show a profit for the year of $64000 before taking account of the following: 1 the reduction of the p...
The table shows transactions relating to a product during July. There was no opening inventory. Purchased: 50 units at $4 per unit. Sold: 30 units...
A trader provides the following financial information for the year ended 31 December. Gross margin 20%; cost of goods sold $220000; drawings $7000...
Why is goodwill adjusted in the books of account when a new partner is admitted?
A partnership revalues its non-current assets upwards. What are the ledger entries to record this?
X and Y are in partnership. They admit Z as a new partner. The profit sharing ratio will be 2:1:1 respectively. Goodwill is valued at $100000. Good...
Which facts about preference shares are correct?
The table shows year end information for a company. Income statement: profit from operations $14000; finance costs ($1500); loss on disposal of no...
A company provided the following information. Revenue for the year $390000; year-end non-current assets at cost $260000; year-end accumulated depr...
The following information is given in the financial statements of a limited company. Ordinary shares $1200000; general reserve $120000; retained e...
Which item is a direct cost?
Samuel manufactures a single product. Total cost per unit is $70 when production is 100 units per week, and $62.50 when production is 160 units per...
How is the issue of inventory from stores valued when using FIFO?
A business absorbs overheads based on machine hours. During the last quarter it had the following budgeted and actual results. Actual overheads $1...
Actual output exceeds budgeted output. Which cost is higher than budgeted?
A company manufactures three products. The following information is obtained in respect of next month's budgeted production. For product X: contri...
The following information is available. Direct materials $20000; direct labour $45000; direct expenses $6000; variable overheads $11000; fixed ove...
A company provides the following information. Budgeted overheads $136000; budgeted labour hours 10568; actual overheads $146000; actual labour hou...
The following information is for a business. Budgeted fixed costs per month $2000; target profit per month $3000; budget variable cost per unit $1...
The costs of a company that annually sells 10000 units are as follows. Direct material $50000; assembly labour $100000; factory overheads $70000. ...
Which statements identify a disadvantage of break-even analysis? 1 It does not show the effect of changes in output on the break-even point. 2 It...
What would not be a purpose of ledger accounts?
Which accounting concepts apply to depreciation? 1 consistency 2 matching 3 money measurement 4 prudence
A motor vehicle was purchased for $12000 on 1 January 2015. Its estimated residual value was $7000 and expected life 5 years. Depreciation was calc...
The following information relates to a motor vehicle part-exchanged for a new vehicle in the year. $ cost of old vehicle 20000 accumulated deprecia...
The table shows information in a purchases ledger control account at the year-end. $ cash paid to suppliers 36000 credit purchases 55000 discount r...
A sole trader withdraws goods for his own use. How does this affect his financial statements? income statement statement of financial position
Which error would affect the balancing of a trial balance?
Which group would appear only on the credit side of a sales ledger control account?
A company has a year-end of 31 December. Its inventory records on that date showed an inventory of 600 units with a cost of $10 each. A fire on 31 ...
A business has a draft profit for the year of $182750. The following adjustments have not yet been made. 1 a decrease of $2800 in the provision for...
Which rule does not apply in the absence of a partnership agreement?
The partnership of Ravi and Tania, who shared profits equally, was dissolved. The capital accounts prior to dissolution were Ravi $50000 and Tania ...
A company issues 50000 ordinary shares of $5 each at a premium of $15. It also issues a 4% debenture, $300000. By which amount do the net assets of...
Which statements describe a capital reserve? 1 It is a reserve arising from a gain which is not yet realised. 2 It is a reserve created by transfer...
The following is an extract from a statement of changes in equity. ordinary share general retained share capital premium reserve earnings $ $ $ $ b...
The following has been extracted from the financial statements of a business. $ revenue 135000 total capital employed 575000 non-current assets 180...
The statement of financial position of X Limited at 31 December 2017 shows the following. $000 non-current assets 1350 current assets 140 ordinary ...
Which business would use a job costing system of accounting?