Cambridge Past Paper Questions
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Analysis of a business's financial statements shows the following. net profit ratio (%) inventory turnover (days) 2011 21 62 2012 23 58 2013 ...
X Limited and Y Limited both started trading on 1 January 2001. Each year, both businesses had a profit from operations of $20000. On 31 December 2...
Who will be most interested in a business maximising its profitability?
A company's sales revenue has increased by 40% in a period, but its gross profit has only increased by 30%. Which factors could explain this? 1 a ...
A business has fixed costs of $100000. It sells a single product for $25 per unit. The contribution to sales ratio is 40%. What is the break-even p...
What is the purpose of cost accounting?
A business provides the following financial information. $ per unit selling price 41 direct materials 5 direct labour 8 variable overhead 3 fi...
A business prepared a cash budget using the following information. $ fixed costs each month 5000 depreciation each month 1000 July $ August $ ...
Why does a trader account for accrued income?
A trader sends his staff on a training course costing $100 per person. 10 staff attended in April and 4 in May. Half the total cost had to be paid ...
A business paid $10000 for motor expenses in the year. The opening prepayment was $1500 and the closing accrual was $2000. What was the charge fo...
An item of revenue expenditure is wrongly treated as capital expenditure. What is the effect of this error?
A trader prepares a disposal account. On which sides do the cost of the asset and sale proceeds appear?
A trial balance at 30 June, before making end of year adjustments, showed the following. | | debit $ | credit $ | |---|---|---| | trade receivable...
Land and buildings are shown in the books of account at a cost price of $200000 with accumulated depreciation of $40000. The property is revalued ...
At 1 January 2014 a business had prepaid rent of $700. In July it paid an invoice for $9300 and on 31 December it transferred an expense of $9000 t...
Which cost should be treated as revenue expenditure?
A sales return of $400 has been credited to the customer's account as $40. A suspense account is created to complete the trial balance. What is t...
The creation of a provision for doubtful debts is an example of which accounting concept?
A business provided the following information. | | $ | |---|---| | 1 April purchases ledger credit balance | 16725 | | 30 April credit purchases f...
A business depreciates its motor vehicles over four years using the straight-line method. A full year's depreciation is charged in the year of purc...
Rachel's trial balance did not agree and she placed the difference in a suspense account. The following shows how four errors have been corrected ...
A bank reconciliation statement has been prepared by an inexperienced book-keeper. | | $ | |---|---| | bank statement balance (overdrawn) | (68100...
An invoice for purchases was credited to the purchases account. How is the balance on the purchases account corrected?
Which item may appear in the manufacturing account of a business?
Inventory is valued at the lower of cost and net realisable value. What is net realisable value?
A trader runs a manufacturing business. Which department should it close?
A club provides the following information. | | $ | |---|---| | opening subscriptions in advance | 1200 | | subscriptions received during the year ...
Which items increase when a company issues new shares? 1 cash (and cash equivalents) 2 equity 3 non-current liabilities 4 retained earnings
John failed to write off a bad debt of $8000. What was the effect of this omission?
A customer places an order for 20 000 bricks. Which costing method will the supplier use to price the order?
Which item is classed as a direct cost?
A manufacturer produces 100000 tins of paint with a total direct materials cost of $300000. Direct labour is 2000 hours at a cost of $400000, and o...
A business provides the following information. | month | number of machine hours | total overheads $ | |---|---|---| | August | 72000 | 842000 | |...
A business produces a single product. | | number of units | |---|---| | opening inventory | 5000 | | production | 15000 | | closing inventory | 20...
A business provides the following information for a cost centre. | | $ | |---|---| | apportioned overhead costs | 160000 | | re-apportioned servic...
Which transaction applies the matching concept?
A disposal account is used to record the sale of a non-current asset. Which transactions are recorded on the credit side of the disposal account?
The following information was available for the disposal of a machine. $ accumulated depreciation 45000 profit on disposal 8100 sale proceeds 75600...
A printing company installed a large printing press. Which costs are capital expenditure in the first year of its operation? 1 installation of the ...
The year-end balance in the cash book was $23780. This was different from the balance on the bank statement. The difference was due to the followin...
At the end of the year, the balance on a firm's sales ledger control account was $12900. The total of the customers' accounts in sales ledger was $...
A suspense account has a balance of $450 debit. What has caused this balance in the suspense account?
An item of capital expenditure has been incorrectly treated as revenue expenditure in the financial statements of a business. What is the effect of...
A company pays or receives the following amounts on the last day of its financial year. $ deposit paid to a supplier 6500 rental income received in...
A sole trader provides the following information. start of year end of year $ $ total assets 100000 135000 total liabilities excluding owner's capi...
A trader did not keep full accounting records. The following information was available for 2015. $ trade payables on 1 January 32785 trade payables...
A partnership admits a new partner. Which statement is correct?
X, Y and Z are in partnership sharing the profits and losses in the ratio of 2:2:1. At 31 December the following information is available. X Y Z $ ...
The following information relates to a partnership. $ profit from operation 90000 loan interest 3200 interest on drawings 6000 drawings 40000 inter...