Cambridge Past Paper Questions
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A non-current asset of a business cost $300000 in 2021. It is depreciated using the reducing balance method at the rate of 40% per annum. A full ye...
A business received $100 cash from a credit customer in settlement of a debt. When recording it, an error of commission was made. Which statement ...
Which statements describe the benefits of preparing a bank reconciliation statement? 1 checks the accuracy of transactions recorded on the bank st...
A trader's cash book shows a debit balance of $12460 at 30 April. Bank charges of $4500 have not been entered in the cash book. A cheque for $1447...
A credit customer gave cash to a sales ledger clerk in part settlement of her debt. The clerk was dishonest and kept the cash for himself. He enter...
The following information is available. balance of trade receivables at the start of the year $48 000 balance of trade receivables at the end of t...
At a business's financial year-end there were expenses owing, expenses prepaid, income owing and income received in advance. How will the ledger a...
A business prepared its statement of profit or loss for the year ended 31 December. During that year, on 30 April, a non-current asset had been so...
The owner of a trading business prepared draft financial statements for the year ended 31 December. It was then discovered that the following tran...
A business sells some inventory for $80 on credit. This originally cost $50. How does this affect the statement of financial position?
Which entries are made to record interest on capital in partnership accounts?
L and M are in partnership, sharing profits and losses in the ratio of 3:2 respectively. For the year ended 31 March, their statement of profit or...
Which reserves are revenue reserves? 1 general reserve 2 retained earnings 3 revaluation reserve 4 share premium account
A limited company has the following in its statement of financial position at 31 March. equity ordinary share capital $200 000 retained earnings $...
A company has calculated inventory turnover periods for two successive years. year inventory turnover in days 1 90 2 120 Company directors have s...
The following information is available for a business at the end of its financial year. credit purchases $140 000 credit sales $220 000 total purc...
A business commenced trading on 1 January. The purchases and sales of inventory for January were as follows: date purchases sales January 4 3 at $...
A company has been asked to quote a price for a specific job. Estimated costs are as follows: direct materials $2000 direct labour $3300 Overhead...
A manufacturing business has a service department, X, and production departments, Y and Z. Department Z is labour intensive. How is the overhead ...
What would cause overheads to be under absorbed?
A business produces two types of product, P and Q, for the month of January. Overheads are absorbed using direct labour hours. The production detai...
Which statements about marginal costing are correct? 1 Contribution is the difference between sales revenue and total production costs. 2 Costs ar...
The following information relates to a manufacturing business. production for the period 2400 units closing inventory 400 units direct material c...
Which statement reflects how cost-volume-profit (CVP) analysis can help with management decision-making?
A business sells computers. When it values its inventory it excludes the value of the inventory that is more than one year old. This is because it ...
A purchases ledger clerk has to use a password to access the ledger in a computerised accounting system. What is the purpose of the password? 1 t...
Peter is a credit customer of John. He settles his account of $200. He pays by cheque and receives a cash discount of 5%. Which entries are made i...
The draft profit for the year of a business is $53000. During the year, the business acquired new premises and included the following costs in the...
Non-current assets can be depreciated using a number of methods. How is the most appropriate method decided?
Ryan purchased a van for $16000 on 31 December 2021. It is his policy to apply 25% per annum reducing balance depreciation for each part of the yea...
The totals of the trial balance of a business did not agree. The following errors were discovered. 1 The wages account had been overcast by $550....
In the books of a trader, discounts received of $1400 have been posted correctly in the suppliers' accounts but debited in the discounts allowed ac...
What are the advantages of preparing a bank reconciliation statement? 1 It eliminates the risk of fraud in banking transactions. 2 It helps to ide...
The cash book of a business showed a debit bank balance of $3900. This differed from the bank statement balance. The bank statement included bank c...
Which items will be entered in the debit side of the purchases ledger control account? 1 contra with sales ledger control account 2 discount recei...
The current assets of a company include the balances on both the rent payable and rent receivable accounts. What do these balances represent?
The following information is available for a sole trader. allowance for irrecoverable debts at the start of the year $1400 total trade receivables...
A sole trader's statement of profit or loss shows the following information. opening inventory $5000 operating expenses $3000 profit for the year ...
A company issued shares at a premium. In which financial statements would the share premium appear?
The statement of financial position of a company at 31 December showed the following: issued share capital: $200 000 200 000 ordinary shares at $1...
Which ratio measures the efficiency of a business?
A company's return on capital employed decreased to 10% in the current year from 15% in the previous year. The directors have noted the following ...
A sole trader's cost of sales is $240000. The gross profit margin is 20%. What are the sales for the year?
A business employs machinists to make a single type of product. As demand increases, more machinists are employed. Every time eight extra machinis...
The inventory movements of a business in a three-month period are shown. receipts month | units | cost per unit | issues units January | 100 | $5 ...
A customer places an order for 20000 bricks. Which costing method will the supplier use to price the order?
The following budgeted and actual information is available. budgeted | actual overheads $460 000 | $420000 labour hours 28 750 | 21000 machine hou...
The following information is available from the costing records. budgeted overheads cost $32000 budgeted direct labour hours 4000 actual overheads...
Which items are included in the calculation of the contribution to sales ratio?
The financial information for selling 6000 units in August was as follows: $ per unit selling price 40 variable costs 22 fixed costs 12 profit 6 ...