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.
The trial balance of a company at 31 December at the end of year 1 included the following amounts. : Ordinary share capital (0.50 shares) 800 000...
Jim is a manager in a limited company. He also owns a few of its shares. Why has he been looking at its most recent financial statements?
H Limited’s cost of sales for the recent two years (Year 2 and Year 1) is as follows: Year 2 $ / Year 1 $: average inventory 100 000 / 65 000 cre...
Which expense for a business may be classified as a stepped cost?
Which statements describe just in time (JIT) management of inventory? 1 It increases administration costs as more suppliers are required. 2 It is ...
The direct materials cost of a batch of soft drinks is $10 000 for 50 000 cans. 60 direct labour hours are required at a cost of $40 per labour hou...
What is an advantage of absorption costing?
The following information is forecast for the next month. opening inventory 20 300 units closing inventory 22 500 units marginal cost profit $90 6...
X Limited has budgeted monthly overheads of $125 000. Its overhead absorption rate is $5 per machine hour. In July there was an under-absorption of...
Which changes result in a decrease in the margin of safety?
A company has the following budgeted information per unit. $: selling price 25 variable costs 10 Fixed costs are $72 000. What is the increase i...
Which statements about cost–volume–profit analysis are correct? 1 Fixed costs remain constant for a range of activity. 2 Profits are calculated on...
Which statement explains the realisation concept?
On the first day of a financial period, before trading started, a business owner introduced her personal items to the business, consisting of goods...
Why might a business adopt a computerised accounting system? 1 to ensure that the accounting records are free from error 2 to ensure that the acco...
A company's profit for the year is $20000. Capital income of $5000 has been treated as revenue income. Capital expenditure of $4000 has been treate...
The following costs for a business relate to a newly purchased machine. 1 alterations to the factory building to install the machine 2 payment of ...
Leandro has owned a delivery van for some years and has depreciated it each year. How should he record the provision for depreciation?
A business depreciates its motor vehicles at 20% per annum using the straight-line method. Depreciation is charged on a month-by-month basis. On 3...
Which error will not affect the trial balance?
The totals of the trial balance of a business did not agree. A suspense account was opened for the difference. The following errors were then disc...
A bookkeeper compared the business bank statement with the cash book. He then updated the cash book and finally prepared a bank reconciliation stat...
Which statement is not correct about the benefit to a business of maintaining control accounts?
A business maintains control accounts as part of the double entry. At the end of a financial period, the sales ledger control account balance of $6...
Which items will be included when valuing inventory? 1 carriage inwards 2 costs of storage 3 purchase price 4 selling costs
The following financial information is available. opening inventory: $800 closing inventory: $1010 purchases: $9260 carriage inwards: $130 revenue...
X, Y and Z are in partnership. What would be shown in the partnership appropriation account? 1 goods taken for personal use of X 2 interest on a ...
Bella and Charlie are in partnership, sharing profits and losses in the ratio 3: 2. They have contributed capital in the same ratio. The partners ...
A company uses a revenue reserve to make a bonus issue of ordinary shares. Which accounts should be debited and credited to record this?
A company had an issued share capital of 400000 ordinary shares of $1 each. It then made a bonus issue of one ordinary share for every five ordinar...
A company's statement of financial position included the following details. bank (debit balance): $300 000 ordinary share capital: $1000 000 share...
Sunil was reviewing the statement of financial position of a business. The statement of profit or loss was not available. Why was Sunil interested...
What is not a limitation of accounting information?
The accounting year of a company ends on 31 December. At the end of Year 1, the company was financed by equity of $850000 and there were no long-t...
On 1 March, a business had an inventory of 3 items which had cost $8 each. The business uses the FIFO method of valuing inventory. During March t...
A factory produces 1100 units per day. Daily machinery set-up costs are $2000. Direct material cost per unit is $3. Machine operators are paid $4...
A business uses absorption costing. Which costs will be charged to production?
The following data applies to a business. budgeted direct labour hours: 20000 budgeted overheads: $300000 actual direct labour hours: 19000 under-...
A business prepared its statement of profit or loss for its first year of trading. It used marginal costing to value the inventory. The finance di...
The following information was provided about a product. selling price per unit: $50 variable cost per unit: $26 total fixed costs: $10000 demand: ...
A manufacturing business provided the following information. selling price per unit: $80 variable production costs per unit: $44 variable selling ...
Which assumptions are true about cost-volume-profit analysis? 1 costs are classified into fixed, semi-variable and variable 2 selling price per un...
Sara and Viraj are in partnership and own a wholesale business. At 1 January 2024, the partners had the following balances. Sara $ Viraj $ Capital ...
Moe runs a trading business and maintains control accounts as a part of the double entry. The following information is available for the month of N...
The following balances had been extracted from the books of W Limited on 1 January 2024. Share capital (ordinary shares of $0.50 each) $ 750000 Sha...
D Limited is a manufacturing company which uses absorption costing. The factory has two production departments, Cutting and Finishing. It also has ...
An item of capital expenditure has been incorrectly treated as revenue expenditure in the accounts of a business. What is the effect of this error ...
A business has a bank overdraft of $4800. It pays for materials invoiced at $3000 less a trade discount of 20% and a settlement discount of 5%. A c...
Which of the following items will be debited to accounts in the purchases ledger? 1 discount allowed 2 payments to suppliers 3 purchases 4 purchase...
The personal spending of the owner of a business is not recognised as a business expense. Which accounting principle is being applied?