Cambridge Past Paper Questions
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The year-end statement of financial position of X Limited at 31 December shows the following: $000 non-current assets 1350 current assets 140 ord...
A manufacturer operates a bonus system. He provides the following information. output required from each worker 175 units time allowed to complete...
A job cost sheet showed the following estimates. $ materials 680 labour at $20 per hour 200 overheads at $10 per labour hour 100 profit 280 price...
What is the most suitable basis to apportion power costs between two production centres?
A manufacturing business makes a single type of product. It has two production departments, machining and assembly. A maintenance department provid...
The following data applies to the budget for a job. direct materials $4800 direct labour $2200 machine hours 240 Direct labour is employed at an h...
A company has two production departments, manufacturing and assembly, and a stores service department. The overheads are apportioned to each depart...
What does an increase in the marginal cost of a product cause?
Which statements describe the usefulness of cost-volume-profit analysis? 1 to see the relationship between costs and revenue at different levels of...
Which statement about sole traders is correct?
Which source of finance would be available to a public limited company but not to a partnership?
Which items will be debited to accounts in the purchases ledger? 1 discount allowed 2 payments to suppliers 3 purchases 4 purchases returns
Tom bought goods costing $100 on credit from Sam. He returned goods costing $20 as faulty. He deducted a cash discount and paid $76 by cheque in fu...
What are the characteristics of non-current assets? 1 They are not intended for resale. 2 They provide future economic benefits. 3 They prevent th...
At the beginning of the financial year on 1 January, a business acquired a new motor vehicle for $34 000. In error, this was recorded in the accoun...
A company purchased a machine on 1 April 2021 for $25 000. It was depreciated at 20% per annum using the straight-line method. A full year's deprec...
Which error will cause a trial balance not to balance?
A business prepared a trial balance that included a suspense account. Draft financial statements were prepared which showed a profit for the year o...
Amit compared his bank statement with his cash book. How did Amit deal with the items revealed by this comparison?
The bank statement of a business shows a credit balance of $1570 at 31 December. The following differences were discovered on comparing the cash bo...
What are the benefits of preparing a sales ledger control account? 1 detecting errors of original entry 2 helping reduce the possibility of fraud ...
A company prepared its purchases ledger control account, which showed a balance of $15 960. The following items were then discovered. 1 Discounts ...
Deepak provided the following information. end of year 1 $ / end of year 2 $ allowance for irrecoverable debts 600 / 800 rate of allowance 3% / 5%...
A sole trader began a business on 1 January with $50 000 capital. During the year she introduced to the business her own private vehicle which had ...
Which provision of the Partnership Act 1890 applies when there is no partnership agreement?
A partnership provided the following information for the year. $: gross profit 76 000 operating costs 30 000 bank interest 1 300 interest on partn...
Why is a statement of changes in equity prepared?
The trial balance of a company at 31 December at the end of year 1 included the following amounts. $: Ordinary share capital ($0.50 shares) 800 0...
Jim is a manager in a limited company. He also owns a few of its shares. Why has he been looking at its most recent financial statements?
H Limited’s cost of sales for the recent two years (Year 2 and Year 1) is as follows: Year 2 $ / Year 1 $: average inventory 100 000 / 65 000 cre...
Which expense for a business may be classified as a stepped cost?
Which statements describe just in time (JIT) management of inventory? 1 It increases administration costs as more suppliers are required. 2 It is ...
The direct materials cost of a batch of soft drinks is $10 000 for 50 000 cans. 60 direct labour hours are required at a cost of $40 per labour hou...
What is an advantage of absorption costing?
The following information is forecast for the next month. opening inventory 20 300 units closing inventory 22 500 units marginal cost profit $90 6...
X Limited has budgeted monthly overheads of $125 000. Its overhead absorption rate is $5 per machine hour. In July there was an under-absorption of...
Which changes result in a decrease in the margin of safety?
A company has the following budgeted information per unit. $: selling price 25 variable costs 10 Fixed costs are $72 000. What is the increase i...
Which statements about cost–volume–profit analysis are correct? 1 Fixed costs remain constant for a range of activity. 2 Profits are calculated on...
Which statement explains the realisation concept?
On the first day of a financial period, before trading started, a business owner introduced her personal items to the business, consisting of goods...
Why might a business adopt a computerised accounting system? 1 to ensure that the accounting records are free from error 2 to ensure that the acco...
A company's profit for the year is $20000. Capital income of $5000 has been treated as revenue income. Capital expenditure of $4000 has been treate...
The following costs for a business relate to a newly purchased machine. 1 alterations to the factory building to install the machine 2 payment of ...
Leandro has owned a delivery van for some years and has depreciated it each year. How should he record the provision for depreciation?
A business depreciates its motor vehicles at 20% per annum using the straight-line method. Depreciation is charged on a month-by-month basis. On 3...
Which error will not affect the trial balance?
The totals of the trial balance of a business did not agree. A suspense account was opened for the difference. The following errors were then disc...
A bookkeeper compared the business bank statement with the cash book. He then updated the cash book and finally prepared a bank reconciliation stat...
Which statement is not correct about the benefit to a business of maintaining control accounts?