Cambridge & Pearson Edexcel Past Paper Questions
Browse 35,704 questions from Cambridge O-Level & A-Level and Pearson Edexcel IGCSE & IAL exams. Click any question to practice.
John maintains a full set of accounting records. Why does he also prepare a statement of financial position?
A sole trader paid off the business's overdraft using his own personal funds. How did this affect the statement of financial position? [Figure show...
Hassin found that he needed help to run his business. He decided to take a partner rather than employ an assistant. Why did he decide to take a par...
Anwar is a sole trader making annual profits of $24000. He decides to admit Dilip as a partner. They agree that Anwar would receive a salary, and p...
BCD Limited provided the following information. [Figure showing table with ordinary shares, retained earnings, debentures] How much was the equity ...
A sports club was formed on 1 August 2020. During the year ended 31 July 2021 the club purchased equipment costing $5000, paying by cheque. In whic...
A sports club has 100 members and the annual subscription is $60. During the year ended 31 August 2021: 12 members paid their outstanding subscript...
Beth provided the following information. [Figure showing table with net assets, 1 January, 31 December] Her drawings during the year amounted to $3...
Roshan's sales for his first year of trading were $55000. His gross profit margin was 20%. The closing inventory was $3200. What were the purchases...
Which information is required to calculate the return on capital employed for a sole trader?
What is the best indicator of the liquidity of a business?
A business provided the following information about its gross margin. Year 1 40% Year 2 38% Year 3 35% What could explain the changes in the gross ...
Sam and Rob each own a trading business. The income of each business is solely from the sale of goods. They provided the following information for ...
Why would the owner of a business want to see his financial statements at the end of the year? 1 to assess the performance and progress of the busi...
Charlie is a car dealer. Joe wanted a new car and went to Charlie's car showroom. On Monday Joe took a car for a test drive and decided to buy it. ...
Which accounting objective requires that financial information is provided in time for a decision to be made?
Why does a trader calculate the profit of his business?
Hassan is a trader. During the financial year he took goods from the business for his own use. How should he record this?
Where are the accounts of credit suppliers maintained?
Which document does a trader issue to remind a credit customer that payment is due?
Tumelo sells on credit. The terms of trade are listed. list price: $200 per unit credit period: 60 days trade discount 15% if 10 units or more are ...
Jane purchased goods and paid by credit transfer. How should this be recorded in Jane's accounting records?
What is shown in a trial balance?
At the end of each year, PT Limited transfers 20% of the profit for the year to the general reserve. Draft financial statements were prepared for t...
The bank columns in a trader's cash book and the bank statement both showed positive balances. A comparison revealed the following differences. $ u...
What is a reason for preparing a sales ledger control account?
Amit's financial year ends on 31 December. The following account appeared in his sales ledger. Dipak account 2020 $ 2020 $ Jan 7 sales 3200 Jun 3 b...
Sally wished to increase the balance on the provision for doubtful debts account at the end of the financial year. How should this increase be reco...
The following errors were found after a statement of financial position had been prepared. 1 A loan repayable in two year's time had been included ...
What are advantages of operating as a sole trader? 1 The owner can keep all the profit. 2 The owner can raise finance by issuing debentures. 3 The ...
Kasi and Ravi are in partnership. The financial statements for the year ended 31 August 2021 showed that Ravi was entitled to interest on capital a...
BCD Limited provided the following information. $ ordinary shares 300 000 retained earnings 200 000 debentures 170000 How much was the equity and t...
What is not part of the prime cost of a manufacturing business?
The value of Thato's work in progress increased during the year. This was recorded in his financial statements. How did this affect the cost of pro...
What are advantages of keeping a full set of accounting records? 1 Financial statements will be free from errors. 2 It is impossible to make fraudu...
Beth provided the following information. net assets 1 January $28.000 31 December $24000 Her drawings during the year amounted to $3000. What was B...
A trader provided the following information for the year ended 31 May 2021. $ trade payables on 1 June 2020 12 250 trade payables on 31 May 2021 42...
What is not a limitation of inter-firm comparison?
Why would a supplier be interested in the financial statements of a credit customer?
Ayesha is a trader who maintains a full set of accounting records and prepares control accounts at the end of each month. She provided the followi...
Jabir owns an electrical wholesale business. The following balances appeared in his books on 30 September 2021. Inventory $8000 Purchases $109000...
On 31 July 2021 the following information was provided by KA Limited, a manufacturer of garden tools. Inventory 1 August 2020 Raw materials $5820 ...
Nikita is a trader. The totals of her trial balance at 30 June 2021 did not agree. The debits exceeded the credits by $2600. Nikita opened up a sus...
Simon has a business selling office stationery. On 1 January 2019 he owned two delivery vehicles which had been purchased on 1 January 2018. Deliv...
Shiv is a trader. His financial year ends on 31 August. He does not maintain a full set of accounting records but was able to provide the following...
Jas owns a printing business and has recently incurred various expenditures relating to her premises. REQUIRED
Anil is a trader. The totals of the trial balance he prepared on 31 December 2020 did not agree. The debits exceeded the credits by $5140. The foll...
Karishma runs her own business. The balances in her books on 1 October 2020 included the following. $ Insurance account 1700 prepaid Electricity ac...
The financial year of VL Sports Club ends on 31 December. The treasurer provided the following information about receipts and payments for the year...
On 1 June 2021, Sue's capital account had a credit balance of $120000. During the year ended 31 May 2022 she withdrew goods costing $1800. The loss...