Cambridge Past Paper Questions

A company's statement of financial position at 1 January 2020 included the following amounts. $Ordinary shares of $5 each: 800 000 General reserve...

A company revalued its premises upwards. Which statement about the increase in value is correct?

The table shows equity and liabilities of a company at 31 December 2020. $Ordinary share capital: 750 000 6% Debentures (2030): 150000 Bank loan (...

The non-current asset turnover of a business improved between 2020 and 2021, even though the net revenue was the same for both years. What caused t...

A business provides the following information. $Trade payables: 39 540 Opening inventory: 15450 Closing inventory: 32780 Credit purchases: 184 600...

When a company produces 5000 units of a product it requires one supervisor. If production is increased beyond 5000 units then two supervisors are r...

A business employs 20 workers as production staff. Each worker is employed for 40 hours per week at a rate of $7.80 per hour. Bonus is calculated a...

A business uses absorption costing to set its selling prices. Which overheads are accounted for by the use of the overhead absorption rate?

A business uses absorption costing and applies a mark-up of 50% when setting selling prices. Each unit of product X has a direct cost of $60 and a ...

A business had no opening inventory. In one month it produced 4000 units and sold 3500 units. The following information is available. Per unit $Se...

Which costs are part of the marginal cost of a product? 1 direct material 2 fixed production 3 fixed selling and distribution 4 variable production

A company provided the following information. $Variable costs: 540 000 Contribution: 360 000 Fixed production costs: 100 000 Fixed selling and dis...

Details for two products made by a company were as follows. Product X $Selling price per unit: 13 Variable cost per unit: 11 Product Y $Selling p...

A manufacturer has a target profit of $80000 per annum. Last year the business made a profit of $60000 when 10000 units were produced and sold. Con...

Which are advantages of a budgetary control system? 1 Budgets help to prepare year-end financial statements. 2 Budgets may be set at easily achieva...

Which items would be entered in the General Journal? 1 goods taken by owner for personal use 2 goods purchased for resale 3 purchase of a non-curre...

Why is it important for a trader to distinguish between capital expenditure and revenue expenditure? 1 to apply the realisation concept 2 to know w...

A company purchased a new vehicle for $30000. It part-exchanged an existing vehicle at a value of $6500, with the balance being paid by cheque. The...

At 31 December 2021 a business had a non-current asset with a net book value of $18000. It had been purchased during the year ended 31 December 202...

Which item is an error of principle?

The sales ledger control account of a business had a balance of $17640. This did not agree with the total of the individual customer accounts in th...

The totals on a trial balance were: debit $500 150 credit $500 000 Which error could have caused the difference?

A draft statement of financial position for a business showed total net assets of $600000. The following items were then discovered. 1 A long-term ...

A company has produced draft financial statements for the year. It is then discovered that some inventory is damaged and the value must be reduced....

A trader took out a 6% bank loan of $30000 on 1 November 2021, to be repaid in full in 10 years' time. Interest is to be paid annually. No interest...

In preparing the financial statements, an accrual for rent payable was treated as a prepayment. What effect does this have on the profit and the cu...

A sole trader is preparing his income statement for the year ended 31 December 2021, his first year of trading. The following information is availa...

The following information is available for the year ended 31 December 2021. $trade payables at 1 January 2021 18000 trade payables at 31 December 2...

What is recorded in both the appropriation account and the current accounts of a partnership? 1 drawings 2 interest on drawings 3 interest on capital

R, S and T were in partnership, sharing profits equally. T retired as a partner. At that time, the balance on his capital and current accounts tota...

Owing to an issue with Question 16, it has been removed from the question paper.

Where is the dividend received by a company shown in its financial statements?

On 1 January a company had 300000 ordinary shares of $1 each and a 10% bank loan of $100000. On 1 July the company issued a 6% debenture of $800000...

X Limited recorded the following information in its books of account. 1 issue of 10000 ordinary shares of $1 each at a price of $1.80 2 payment of ...

H Limited uses ratio analysis to analyse its financial performance. On 31 January 2021 the company prepared draft financial statements before it re...

A company purchases its inventory on credit. The following information is available. sales revenue: 440000 purchases: 270000 trade payables: 90000 ...

A business has the following wages policy for its direct workers. standard working hours per week: 40 basic rate per hour: $16 overtime: basic rate...

Which statements are correct about the first in first out (FIFO) method for inventory valuation? 1 issues to production are valued at the most rece...

A manufacturing business has two production departments: assembly and painting. The following information is available. assembly: machinery at net ...

Which statement about absorption costing is correct?

What is equal to total revenue at the break-even point?

A business manufactures and sells a single product. It is sold for $10 per batch. The variable cost is $4 per batch. Fixed costs are absorbed based...

A company provides the following information for a year. sales: 400000 total variable costs: 240000 total contribution: 160000 total fixed costs: 1...

A business makes and sells a single product. The budget for sales of 5000 units is as follows: per unit: selling price: 75.00 variable production c...

Which statements about a budgetary control system are correct? 1 It is a long-term plan. 2 It is a short-term plan. 3 It is qualitative. 4 It is qu...

Which list is a long-term source of additional funds for a limited company?

Which statements describe advantages of maintaining full accounting records? 1 A more complete assessment of business performance is possible. 2 B...

Maria recorded a cheque for $475 received from Josh, a credit customer. Josh had deducted a 5% cash discount. The cheque has now been returned as d...

A business purchased a shop and incurred the following costs. purchase price of the shop $680 000 legal fees incurred in the purchase of the shop ...

A used motor vehicle was part exchanged for a new motor vehicle. The balance of the purchase cost of the new motor vehicle was settled by cheque. ...