Cambridge Past Paper Questions
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Which statements correctly describe cost-volume-profit analysis? 1 It assumes a linear relationship between costs, revenue and volume. 2 It can be...
A company needs to raise finance to build a factory. Which action is suitable to protect the existing shareholders' interest?
Which items appear in the credit column of a trial balance?
A trader sells goods for $6600 to a customer on 31 March 2025, the last day of his financial year. He does not produce an invoice until three days ...
An item of capital expenditure has been treated as revenue expenditure. What is the effect on the non-current assets and on the loss for the year?...
Y Limited purchased a motor van and incurred the following expenditure at the beginning of the year. $ motor van 50 000 delivery of motor van 450...
A business charges depreciation on its property using the straight-line method. At the start of the year, the business revalued its property upwar...
X Limited purchased a property for $100 000 on 1 January 2010. The property had an expected useful life of 50 years. On 1 January 2024, the propert...
The totals of a trial balance did not agree. As a result, a suspense account was opened with a credit balance of $1720. So far, two errors have bee...
The total of the discount column on the debit side of the cash book had been debited to the discount received account. Which accounts will be used...
At 31 December, the following information is available about a company's banking transactions. balance at bank per bank statement $22650 uncleared...
A business maintains control accounts as a part of its double entry system. The balance of the purchases ledger control account is $8232. However, ...
A sales ledger control account included the following entries: 1 contra with the purchases ledger control account $500, debit 2 discount allowed $...
Which item would result in a credit entry in a statement of profit or loss?
A sole trader rented out part of his business office on 1 January 2024 at $500 per month for 24 months. During the year ended 31 December 2024, he ...
What will have the effect of increasing the profits when entered in the statement of profit or loss for a sole trader?
A partnership maintains both capital and current accounts for its partners. What is the correct accounting entry for recording interest on capital...
Lee and Mia are in partnership sharing profits and losses in the ratio 4:3 respectively. An error was made when their appropriation account for th...
The following information is extracted from the draft statement of financial position of a limited company at 31 December. ordinary share capital ...
Who are the internal users of financial information? 1 bank 2 directors 3 employees 4 potential investors
A trader calculates his trade receivables turnover as 89 days. What was the denominator (bottom figure) in his calculation?
The following details have been extracted from the financial statements of a limited company. statement of profit or loss for the year profit fro...
A business makes a single type of product. The following information is available. production total cost $ 600 units 4200 800 units 5200 What is...
W Limited is unsure whether to use marginal costing or absorption costing. Which row is correct? charges overheads to expenses rather than to pro...
J Limited makes individual pieces of furniture in customers' homes. The business adds a mark-up of 40% when quoting for jobs. It received an enqui...
A manufacturing company uses absorption costing. The following information for one month is available for the cutting department. budget actual ov...
A business provides the following information. number of units produced and sold 48 000 $ direct materials ($3 per kg) 298 000 direct labour ($4 ...
What is the correct definition of margin of safety in dollars?
A company had sales revenue of $500000 and total costs of $400000. Fixed costs were $120000. What was the total contribution?
The following information is available. sales $250 000 variable production costs $150 000 fixed production costs $30000 gross profit $70000 fixed ...
What are the limitations of cost-volume-profit analysis? 1 It assumes fixed costs will remain constant. 2 It cannot be used if multiple products a...
Gary rents his business premises. His financial year ends on 30 September. On 1 October 2016 rent prepaid amounted to $3000. During the year ended ...
Ann's financial year ends on 31 August. The annual rates on her shop are $3000. On 1 September 2016 rates prepaid amounted to $750. Rates paid duri...
Ajay maintains a provision for doubtful debts of 3% of trade receivables. On 1 January 2016, the balance on the provision for doubtful debts accoun...
Mona paid $32000 for a new motor vehicle. This included $100 for fuel and $250 for road tax. She debited the purchases account and credited the cas...
A trader incorrectly posted sales returns of $100 to the credit of purchases returns account. What was the effect on the gross profit?
The owner of a business paid $5000 into the business bank account. A loan for $10000 repayable in 2020 was also obtained and the money used to purc...
Tareq started a business on 1 October 2016. He provided the following information. On 28 November 2016 he paid an insurance premium, $1800, for the...
What is a disadvantage of forming a partnership?
Abi and Erni are in partnership. They share profits and losses equally. Erni is entitled to an annual partnership salary of $3000. The profit for t...
A golf club has 230 members. The annual subscription is $100. At the beginning of the year subscriptions prepaid amounted to $1000 and at the end o...
What would not appear in the income and expenditure account of a sports club?
Karim did not keep proper accounting records, but was able to provide the following information. capital at 1 January $58000 drawings during the ye...
Sumit does not maintain a full set of accounting records. What does Sumit not need to calculate his credit sales?
Which is shown as loan capital in the statement of financial position of a limited company?
The financial year of AB Limited ends on 30 September. Debenture interest is paid annually in arrears on 1 October each year. Where did debenture i...
In year 1, Sam's gross profit was calculated as follows. $ revenue $180000 opening inventory 6000 purchases 118000 124000 closing inventory (4000) ...
Stephan's major competitor has invested in a new machine for making goods more cheaply. Stephan knows this will affect his sales but did not record...
At the end of the financial year Omar's inventory was 100 units of which 10 units were damaged and could not be sold. The selling price per unit is...
A trader provided the following extract from his sales journal. 2017 sales journal: October 7 J Sango goods $100 trade discount $20 Total $80 Which...