Cambridge & Pearson Edexcel Past Paper Questions

Which statement about a receipts and payments account is correct?

A business sells some inventory for $80 on credit. This originally cost $50. How does this affect the statement of financial position?

A vehicle is sold for $1000. It had cost $6000 and $2800 depreciation had been provided on it. What is the profit or loss on disposal?

A company has ordinary shares of $1 each. Each year it pays a dividend of 10% of the nominal value of the shares. It now wishes to raise a further ...

An extract from a statement of financial position is as follows. [Table: ordinary share capital 50000, general reserve 10000, retained earnings 400...

A company had a trade receivables collection period of 80 days in 2011 and 100 days in 2012. Total revenue was the same for both years. Which state...

A company's financial statements show the following. [Table: profit from operations 160000, finance charges 40000, ordinary share capital 500000, r...

The following information has been taken from a statement of financial position. [Table: non-current assets 150000, capital and reserves 170000, cu...

A company has ordered a new machine, to be delivered in six months. In the short term, the machine hours will be a limiting factor. It has made the...

The following data is available for the production department of a manufacturing company. Overheads are absorbed on a direct labour hour basis. [Ta...

The following information applies to a business. [Table: output (units), sales $, profits $] What is the contribution to sales ratio?

A business produces one product. The following details are available for the budgeted production of 150000 units. [Table: selling price per unit 1....

A business provides the following information. [Table: month, number of machine hours, overheads $ for April and May] The variable overhead rate pe...

A company plans to make the following payments in June 2014. 1 an insurance premium for the 12 months from 1 July 2014 2 the payment for equipment ...

Hedley has 100 items of inventory in his warehouse and five more with a customer return basis. He provides the following information. $ per unit hi...

When preparing a sole trader's annual accounts, no adjustment was made for a prepayment at the end of the year. What is the effect of this omission...

A trader took out a 6% bank loan of $30000 on 1 November 2013, to be repaid in full in 10 years' time. Interest is to be paid annually. No interest...

A non-current asset is depreciated due to passage of time. Which type of non-current asset is it?

On 1 June 2011, a company purchases machinery for $18000. The company depreciates machinery at 20% per annum using the reducing balance method. The...

A trial balance failed to agree. A suspense account was opened. The following errors were then discovered. 1 The sales returns journal had been und...

The bank column of a cash book showed a credit balance of $5000. There were unpresented cheques amounting to $1500. The bank statement showed bank ...

What would cause a trial balance not to balance?

X buys from and sells goods to Y. At the end of the month, X owes Y $3200 and Y owes X $1941. Which double entry records the contra entry in X's bo...

A business provides the following information. $, revenue 140000, opening inventory 22000, closing inventory 24 500, purchases 120000 Goods are s...

For the eleven months ended 31 August 2013, snack bar takings were correctly $109340. For September 2013, the snack bar takings were mixed up with ...

A sole trader runs a retail store. Which department is most likely to close?

A business owner suspects a loss of cash has occurred. He provides the data shown. $, cash balance at the start of the month 150, cash balance at ...

A partnership makes a profit for the year of $108000 before taking account of appropriations. Other financial information is as follows. X, Y, Z s...

A business has settled a legal dispute with a customer and expects to pay him $10000 before the end of the next financial year. Which heading is th...

Simon provides the following information about his costs for the year. $, raw materials 16100, factory depreciation 2400, production labour 18000,...

Which shares are entitled to have arrears of dividend carried forward to future years?

A company issues shares at a premium. Which effect does the issue have on the company's statement of financial position? net assets, share capital...

A company's financial statements include the following. $, profit before interest 200000, profit for the year 140000, issued share capital 500000,...

A business sells a single product. This year the gross profit margin and net profit margin were both lower than last year. What is the reason for t...

The following information is given about four products. Which product makes the most gross profit? inventory turnover (per annum), average invento...

A company's non-current asset turnover figure rises from 3.4 times in Year 1 to 4 times in Year 2. Sales revenue has been constant. What explains t...

Gordon sells goods on credit to Sybil. Which information from Sybil's financial statements is of greatest interest to him?

A business has the following total overheads for two different output levels. total overheads $, output (units) 200 000, 20 000 216000, 30 000 Wh...

The data relates to the production of three products. product X $, product Y $, product Z $ contribution per unit 160, 175, 190 fixed overhead per...

Sybil owns a vehicle which on 1 August 2014 will be shown at a cost of $10000 with accumulated depreciation of $6000. On that date she expects to t...

Which statement contains the correct accounting treatment for accrued income?

A trader made the following transactions. $ cash withdrawn from bank for business use 200 cash banked 120 What was the total effect on ledger ac...

Rent is paid by a business monthly in advance on the first day of each month. The payments during this financial year have been as follows. up to ...

A business started on 1 January 2013. At 31 December 2014 the following information was available. 31 December 2013 31 De...

A business purchases inventory on a credit basis. Which item affects the amount paid to suppliers?

A business depreciates its non-current assets at 20% using the straight-line method. Depreciation is calculated on a time basis in the year of acqu...

The table shows information for a business at 31 March in Year 1. $ inventory 16 100 trade payables 5200 other payables 2000 The informatio...

The following information is available. $ prime cost 400 000 factory overheads 220000 inventories: opening ...

A business has extracted the following information from its books of account at 31 December 2014, its first year of trading. $000 carriage inward...

A trader maintains a sales ledger control account. How can he calculate credit sales?