Cambridge Past Paper Questions
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A business makes wedding dresses. Each machinist is paid $30 a day and each supervisor $40 a day. Each supervisor can work with up to 10 machinists...
The graphs show projected sales and cost information for products X and Y.
A business purchases a vehicle for $10 000. The business depreciates its non current (fixed) assets at 20% using the diminishing value method. What...
Accountants prefer the commercial reality of a transaction to a strictly legal approach. Which accounting principle is being applied?
There is great uncertainty about the continuance of a business. This has caused the proprietor to make a large reduction in the valuation of the ye...
The cash book of a business shows a credit balance of $12 500 at 30 June. Bank charges of $2000 have not yet been entered in the cash book. A chequ...
Closing inventory has been overvalued. What is the effect on the financial statements? net current assets overstated, profit from operations overst...
At the year end a company discovers that some inventory is damaged. This inventory originally cost $2000 and to replace it would now cost $1900. It...
A club charges each of its 100 members an annual subscription of $12. At the end of a year four members had not paid their annual subscription. Wha...
How should goodwill be treated by a limited company?
A company issues for cash 50 000 shares of $5 each at a premium of $15 each and $300 000 4% debentures. By what amount will the net assets of the c...
An extract from Bumble Ltd's balance sheet shows the following. $000 ordinary shares of $0.25 each 500 share premium 100 retained earnings 300 The ...
A business paid $10 000 for waste disposal in the year. The opening prepayment was $1500 and the closing accrual was $2000. What was the charge for...
The non-current assets of a business are shown. end of year $ start of year $ cost 360 000 300 000 accumulated depreciation 120 000 75 000 net book...
Which transaction would increase the current assets of a business?
The following summarised information has been taken from the balance sheet of a partnership. $ non-current assets 42 000 capital accounts 36 000 cu...
What is the main use of a computerised age analysis of debtors?
A manufacturing company has the following balances at its year end. $ closing inventory of raw materials 24 500 direct manufacturing wages 162 800 ...
A partnership provides the following financial information for the year ended 30 June 2011. $000 profit from operations 240 bank interest payable 2...
A new business was established with opening capital of $20 000. At the end of the first year, assets less liabilities were $26 000. The owner withd...
The annual accounts of a business include the following. $ revenue 160 000 opening inventory 10 000 closing inventory 14 000 Inventory turnover is ...
A company's profit from operations was $128 000. Interest payable was $8000. The following amounts were included in the company's balance sheet. $ ...
A business has $10 000 in the bank and buys inventory for $6000 paying by cheque. What is the effect of this on its current ratio and quick (acid t...
The following data is available at the end of a financial year. opening inventory $60 000 purchases $420 000 closing inventory $80 000 mark up 25% ...
Which cost will decrease as production is increased?
A business sells its product for $50 a unit and has variable costs of $30 per unit. Its fixed costs for this year were $200 000. Next year, fixed c...
A business has sales of $250 000, fixed costs of $50 000 and a contribution/sales ratio of 30%. What is the profit?
A business provides the following information for a month. actual direct labour hours worked 8000 actual overhead expenditure $88 000 budgeted dire...
The following information is provided by a company for a month. actual direct labour hours worked 4500 budgeted direct labour hours 5000 budgeted o...
What do the break-even charts show regarding the profitability of and risk attaching to products 1 and 2? [Break-even chart for product 1] [Break-e...
Which graph shows the fixed cost per unit produced in a manufacturing process?
A company's sales are made evenly over a year (360 days). 10% of the sales are for cash, debtors total $26 700 and the trade receivables turnover p...
A business sells goods at a mark up of 33.3%. Information for a year is given. $ revenue 600 000 opening inventory 53 000 closing inventory 68 000 ...
The table shows opening and closing balances for the rent receivable account. start of year $ rent received in advance 4200 rent due in arrears 2...
A non-current asset costing $206 000, with a net book value of $131 000, is revalued to $275 000. How should the revaluation be recorded?
A business buys a machine on hire purchase for $50 000. Although it will not own the machine until it has paid the final instalment, it has made th...
A sole trader owns a vehicle valued at $4000 for his own use and a vehicle valued at $2500 for business use. On 1 April 2012 he sold the business v...
Which accounting principle means that a company's financial statements are comparable from one period to the next?
The table shows details relating to a company's banking transactions at 31 December. $ balance at bank as per bank statement 22 650 uncleared lodg...
A company's accounts showed a gross profit for the year of $32 500. After the draft financial statements were prepared it was found that the openin...
A manufacturing company has the following information for the year ended 31 December. $ purchase of raw materials 58 000 wages of machine operator...
The table shows information about four partners in a partnership. Which partner has the greatest net reward from interest on capital and interest o...
X and Y are in partnership sharing the profits equally. No goodwill account is maintained in the accounts. Z joins the partnership and pays $30 000...
Which statements about non-profit making organisations are correct? 1 A club or society may engage in trading activities. 2 A club or society may s...
A business sells goods at cost plus 25%. Information for a year is shown. $ revenue 240 000 opening inventory 42 000 closing inventory 48 000 Wha...
The inventory records of a business show the following information for product X. units cost per unit $ 1 January opening balance 100 3 3 Janua...
A company has an issued share capital of 200 000 6% cumulative preference shares of $1 each fully paid and 800 000 ordinary shares of $1 each fully...
A company raises finance by issuing debentures. What is the effect on net current assets and short term profits? net current assets profits decr...
A business finds that it is unable to pay its trade payables because of a poor cash flow. What should it do to improve its cash flow?
For some years a business has given 2% cash discount to its customers and lost 3% of its inventory to pilferage by staff. On 1 January, the busines...