Cambridge Past Paper Questions
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The following balances are extracted from the books of J Limited. | | 30 April 2019 $ | 30 April 2018 $ | |:---|:---|:---| | ordinary shares of $0...
Which action will increase a company's current ratio?
A trader wishes to set a selling price. How does he use a mark-up?
The following information is available for the year ended 31 December 2018. | | $ | |:---|:---| | revenue | 800 000 | | cost of sales | (175000) |...
On 1 January 2018 a business expected to have sales for the year ended 31 December 2018 of $450 000. Its non-current assets at that date were $3060...
A business uses the First In First Out (FIFO) method to value its inventory. The following inventory transactions took place during a month. There ...
A business has two production departments: assembly and machinery. The following budgeted information is available. | | assembly | machinery | |:-...
A shortage caused a business to pay more for its purchases of raw materials. What is the effect of this? | | break-even point | marginal cost | co...
Which statement best describes a stepped fixed cost?
A company produces less than it sells in a particular period. Which statement is correct?
Which statements are true about the preparation of a break-even chart? 1 Costs are easily classified into fixed and variable. 2 Fixed costs always ...
When a company had sales revenue of $600000, its variable costs were $300 000. At the break-even point, its sales were $400000. How much profit did...
A company provided the following information. | | $ | |:---|:---| | total sales | 400 000 | | production and sales (units) | 10000 | | total costs...
Last year a company sold 2000 units and made a contribution of $50 per unit. Profit, after deducting total fixed costs, was $60000. This year: sale...
Why do businesses prepare budgets? 1 to communicate plans 2 to control activities 3 to improve co-ordination 4 to prepare their annual financial st...
A business depreciates its non-current assets. It then includes them in the statement of financial position at the net book value. Which concept is...
Which item is capital income?
A company purchased a machine on 1 April 2017 for $25000. It was depreciated at 20% per annum using the straight-line method. A full year's depreci...
Why do businesses charge depreciation on their non-current assets?
A trader's trial balance did not agree at the end of the financial period and a suspense account was opened. The following errors were discovered. ...
The following financial information is available for a business. [Table with 'draft profit for the year' $12650 and 'closing capital' $52780] The f...
A sales ledger control account has a closing balance of $21000. It was discovered that a contra entry with the purchases ledger control account for...
A sole trader does not keep a complete set of books of account. He believes a staff member has stolen some cash. Which items will not be needed to ...
A business provides the following information. [Table with 'trade receivables' $ and 'provision for doubtful debts' $ for 31 December 2018 ($46200,...
On 1 March a company has prepaid $3600 for 12 months' travel costs. It also has an outstanding hotel bill of $180. During March it pays the outstan...
A business owner provided the following information at the end of his first year of trading. [Table with 'closing inventory' $15000, 'total payment...
X, Y and Z were in partnership, sharing profits equally. When Z retired from the business the assets were revalued. Goodwill was also valued but wa...
L and M are in partnership, sharing profits and losses in the ratio of 3:2. They have the following current account balances. [Table with L $ and M...
How is unpaid debenture interest recorded in the financial statements of a company at the year end? 1 a current liability in the statement of finan...
On 1 December 2019 a company's statement of financial position included the following. [Table with 'ordinary shares of $5 each' $2500000, 'share pr...
A business sells goods at a uniform mark-up of 25%. The following information is available. [Table with 'sales revenue' $120000, 'opening inventory...
The rate of inventory turnover of a company has been calculated for two successive periods. current period 5.6 times previous period 4.8 times The ...
The following items appear on a statement of financial position. [Table with 'inventory' $20000, 'cash and cash equivalents' $3500, 'trade payables...
Which costs are indirect? 1 bought-in components used in a finished product 2 materials used for factory maintenance 3 raw materials used in a fini...
A business provided the following information. [Table with 'budgeted overheads' $20000, 'budgeted direct labour hours' 2000, 'direct labour rate' $...
A business has produced the following estimates of labour costs for next month. [Table with 'units produced' (600, 800, 1100) and 'total labour cos...
Why are service centre costs apportioned to production departments?
The following data were available for a department for July. [Table with 'budget' and 'actual' for 'direct labour hours' (40000, 41950), 'machine h...
Which statements about marginal costing are correct? 1 It cannot be used as a basis to calculate contribution. 2 It is useful for decision-making. ...
A company with fixed costs of $50000 and a contribution to sales ratio of 40% makes a profit of $30000. What are the total costs?
What is not an assumption made in cost-volume-profit analysis?
The actual output for a business is lower than that forecast. Which costs would normally still be the same as forecast? 1 fixed cost per unit 2 tot...
A manufacturer produces a single product. The following information is available. [Table with 'selling price per unit' $14, 'variable costs per uni...
Which of these items require entries to be made in the general journal? 1 purchase of a non-current asset on credit 2 sale of inventory to a custo...
Which statement relating to depreciation is not correct?
Arnaud owned a vehicle which originally cost $20000. During the year ended 31 May 2021, he paid for repairs of $3700 and provided depreciation of $...
Two years ago a business purchased two machines costing $25000 each. During the third year one of them with a net book value of $16000 was sold. A...
Which statements about an unpresented cheque are correct? 1 It arises as the result of an error of omission. 2 It arises from a timing difference....
The balance on the purchases ledger control account did not agree with the total of balances from the purchases ledger accounts. The following erro...
The correction of which error requires an entry in the suspense account?