Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
On 1 May 2018 Trevor had a debit balance of $3000 on his rent receivable account. Rent received during the year was as follows. 28 May 2018 18000 3...
A sole trader makes a profit for the year of $31000, after taking the following items into account. carriage inwards 2600 decrease in provision for...
X and Y are in partnership sharing profit and losses equally. Y's opening current account balance was $1350 debit. The residual profit for the year...
F and P are in business sharing profits and losses in the ratio 3:1. Their capital account balances are: F 90 000 P 60000 B is introduced as a new ...
L and M are in partnership, sharing profits and losses in proportion to their capital invested. The following information is available: capital: L ...
Which item is shown in the statement of changes in equity?
Which statement about bonus shares is correct?
The equity of P Limited at 1 January 2019 was $668000. Profit for the year ended 31 December 2019 was $120000. During the year ended 31 December 20...
A business applied a mark-up of 25%. Which statement is correct?
A company's results for a year showed credit sales of $500000. The trade receivables collection period was 73 days. In the next year, credit sales ...
A business has the following current assets and current liabilities. trade receivables 6000 bank overdraft 1500 cash in hand 50 trade payables 5050...
A mechanic carries out regular factory machine maintenance. He is paid an annual salary of $20000. Which type of cost is this?
A manufacturer uses the weighted average cost (AVCO) method of inventory valuation. Opening inventory was 10 units at $50 each. During the month: 3...
Which statement is correct when production increases?
Why might absorption costing be used? 1 to calculate contribution 2 to decide whether or not to accept a special order 3 to make long-term decision...
The following information is available for a business. fixed overheads budget $180000, actual $190000 hours budget 10000, actual 11000 What was the...
A business plans to sell all the 10000 units produced next year at the same price as this year. Direct costs are forecast to decrease by $2 per uni...
The following information is available for a business. sales revenue $600000 variable cost $180000 break even sales revenue $400000 What is the pro...
Which statements about cost-volume-profit analysis are correct? 1 It assumes costs and revenues behave in a linear fashion. 2 It assumes that only ...
A company is forecasting its profits at two levels of activity. sales units: 5000 units, 8000 units total fixed and variable costs: $20000, $26000 ...
Why would a business prepare budgets? 1 to communicate its plans 2 to enable it to control costs 3 to improve its products' quality 4 to plan its o...
A business values its inventory at the lower of cost and net realisable value. Which accounting concept is being applied?
On 1 May, Tom sold an old motor vehicle with a net book value of $10000 to Arnold for $12000. Arnold paid $7500 by cheque and agreed to pay the bal...
Which item is not included as part of the capital cost of a new machine?
Why does a business charge depreciation on its non-current assets?
The net book value of motor vehicles of a company is shown. beginning of the year end of the year $312000 $305000 During the year, an old vehicle...
The bank statement of a business showed a credit balance of $4520. This did not agree with the cash book. The following were discovered. 1 Bank ch...
What may help a book-keeper detect errors in the accounting records of a business? 1 books of original entry 2 sales ledger control account 3 stat...
The closing balance on a purchases ledger control account is $163762. The purchases journal has been undercast by $1000. What is the correct closin...
A business has calculated its draft profit for the year as $15000. The following were then discovered. 1 General expenses were understated by $600...
A sole trader maintains a provision for doubtful debts at 5% of trade receivables. Provision for doubtful debts at the start of the year was $2750....
Esarba has a financial year end of 31 December. On 31 March 2020, she transferred her private vehicle to the business at a value of $12000. Her p...
At the end of his first year of trading, the trader lost all of his inventory in a fire. He knows the values of sales and purchases and wishes to c...
X and Y were in partnership sharing profits and losses equally. Z was admitted as a partner and the profit and loss sharing ratio for X, Y and Z w...
Which items would appear in a partnership's appropriation account, in the absence of a partnership agreement? 1 profit for the year 2 partners' in...
Annie and Bernie have been in partnership for some years, sharing profits and losses in the ratio 2:1. On 1 January 2020, they decided to introduc...
The total of shareholders' equity at 31 December 2019 was $45500. During the year ended 31 December 2020, the following took place. 1 An issue of...
The following relates to a limited company during a year. $ repayment of a debenture 200 000 receipt from issue of ordinary shares 500 000 non-cur...
What is included in the reserves of a limited company?
Which ratio will help a business assess its ability to meet its immediate cash requirements?
The following information for a business was available at the end of its financial year. inventory $ 20 000 bank 8400 credit trade receivables 350...
A manufacturing company pays its production employees basic wages at the same hourly rate every week. It also pays them a bonus based on achieving ...
A company receives the following units of raw material into inventory. units per unit $ total $ 120 38 4560 100 40 4000 60 44 2640 It then issued...
The budgeted data of N Limited is as follows. production level total costs 15000 units $406 000 25000 units $546 000 What is the budgeted fixed c...
In March, a company's overhead absorption rate was $2 per machine hour. In April this rate increased. What had increased in April causing the chang...
A business absorbs its overheads on the basis of machine hours. The following information is provided. actual budgeted overheads $564 000 $560 00...
Which situation is not usually suitable for the use of marginal costing?
The following budgeted information is available for 10000 units. per unit $ selling price 53 direct materials and wages 22 variable manufacturing ...
The budgeted income statement of J Limited shows the following. sales $ 400 000 variable costs 240 000 fixed costs 132 000 profit for the year 28 ...
A business provided the following budgeted information. $ break-even sales revenue 300 000 fixed costs 180 000 target profit 144 000 What is the ...