Cambridge Past Paper Questions
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A business has the following information relating to its single product. $ selling price per unit 30 variable cost per unit 14 total cost per unit...
A company makes three products for which the following details are given. product X product Y product Z $ $ $selling price per unit 40 48 72 direc...
Last month a company made and sold 10000 units and earned a contribution of $20 per unit. Its final profit, after deducting total fixed costs, was...
Which statements about cost-volume-profit analysis are correct? 1 Fixed costs remain constant over a range of activity. 2 Profits are calculated o...
Why do businesses prepare budgets? 1 to communicate plans 2 to improve coordination 3 to plan annual operations 4 to plan long-term strategies
The inclusion of unpaid loan interest in financial statements is in accordance with which accounting concept?
What is depreciation?
A trader depreciates fixtures and fittings at the rate of 10% per annum on cost. On 1 January 2019 a purchase of new fixtures and fittings, $5000, ...
A company had a non-current asset which cost $370000. The asset had a 10-year useful life and an estimated residual value of $20000. A full year's ...
Which item is recorded on the debit side of a sales ledger control account?
A trader prepared a trial balance which did not balance. The difference was posted to a suspense account. The following errors have now been found....
How could a credit entry of $500 in X's account have arisen in the books of account of Y?
An invoice for purchases was credited to the purchases account. How will the balance on the purchases account be corrected?
Rent is paid by a business monthly in advance on the first day of each month. The payments during a financial year were as follows. up to and inclu...
What is the effect on profit for the year and net assets when accrued expenses are understated?
Ali's trade receivables at 31 December 2019 were $26500. He knew that $400 of these were irrecoverable. He wished to maintain a provision for doubt...
Adil and Bashir were in partnership sharing profits and losses in the ratio 2:1. Chandra joins the partnership and profits and losses are now to be...
How is a loss on realisation recorded when a partnership is dissolved?
John and Brian are in partnership sharing profits and losses equally. John receives a salary of $2000 per annum. Brian loaned the business $5000. H...
A company issued 100000 ordinary shares of $1 each at a premium of $2. The market value was $4 per share. Which statement is not correct?
Which item has no effect on the total equity of a limited company?
Information relating to W Limited for the year ended 31 December 2019 was as follows: $ retained earnings at 1 January 2019 22000 profit from ope...
Which financial information is not available for potential shareholders of a limited company?
The following information is available. $ $ revenue 600 000 opening inventory 46000 purchases 244 000 290 000 closing inventory 50 000 ...
A company's financial statements for the year ended 31 December showed the following: $ issued share capital 150 000 non-current liabilities 280 ...
Which cost can be classified as a fixed cost?
An employee works a 40-hour week at an hourly rate of $8. She receives a bonus of 30% of the hourly rate for time saved producing each unit. The ta...
A business uses the weighted average (AVCO) method to value its inventory. It purchased the following units of inventory. units cost per unit $ t...
A business provides the following information. month number of machine hours overheads $ April 34000 493 000 May 67000 625 000 The variabl...
A business absorbs its fixed overheads using direct labour hours. The following information is provided. actual budgeted overheads $600 000 $50...
A company sells a single product for $24 per unit. The variable cost is $8 per unit. Fixed costs have been absorbed based on a normal activity leve...
A product has the following revenue and costs per unit. $ selling price 40 marginal cost 22 fixed manufacturing overhead 6 non-manufacturing ov...
Which statements about cost-volume-profit analysis are correct? 1 It applies over any time period. 2 It is suitable for any range of output. 3 Prof...
Total costs at two levels of production are as follows. units $ 10000 230 000 16000 320 000 Fixed costs will increase by $30000 if more than ...
Which are benefits of a budgetary control system? 1 It can be used to control expenditure. 2 It can be used to record accounting transactions. 3 It...
A trader has prepared financial statements which include unpaid wages to her employees. Which accounting concept is being applied?
On which basis will non-current assets be valued if the business is not a going concern?
A business has a financial year end of 31 December. It depreciates its machinery on a month-by-month basis. It uses the straight-line method at 10%...
A business purchased a non-current asset for $500000 with an expected life of 20 years. After that time it was expected to be sold for $100000. It ...
Which items are capital expenditure? 1 payment of wages to staff to install new equipment 2 purchase of a new computer for office 3 purchase of spa...
A sales ledger control account showed a debit balance of $15000. The following errors were discovered. 1 Returns outwards, $200, had been credited ...
The bank account had a debit balance of $5760 in the cash book at 31 May. The following items were identified when reconciling the bank account wit...
A trader maintains a full set of accounting records. Each month she issues many sales invoices. Where does she record an individual sales invoice?
Brian had a service business which held no inventory. His current assets and current liabilities at 1 April were as follows. $Trade receivables: 1...
Frieda's provision for the doubtful debts account for the year included a debit entry representing the change in the amount provided. The rate of p...
A trader's income statement recorded sales, $10000, and cost of sales, $7070. The trader had taken goods for his own use during the year, cost $280...
William buys radios for $10 each and sells them for $15 each. His draft statement of financial position included a value of $1500 for inventory. Hi...
A sole trader has not kept a full set of double-entry records. The following information relates to the business for the year ended 31 March 2021. ...
Which statement is correct in the absence of a partnership agreement?
X and Y are in partnership sharing profits and losses equally. They have combined capital account balances of $200 000. Z was admitted as a partner...