Heritage International School
Accounting Examination
March 22
Total Marks: 50
Date : ______________
Grade :7
Student Name: _____________________
Time : 2 hrs 30 mins
Score :______________
INSTRUCTIONS
Answer all questions in Section A, B and C.
Use a black or blue pen.
Write your name in the spaces provided.
Write your answers in the spaces provided.
Do not use erasable pen.
Show all working when required.
Make use of a calculator.
Make sure your exam paper has 6 printed pages.
Section A
This section consists of 10 marks.
You are given 4 answers A, B, C and D. Circle in the correct answer.
1. Which of the following is not a liability?
A. Bank loan B. Overdraft C. Creditors D. Premises
2. Assets =
A. Capital – Liabilities B. Liabilities – Capital C. Capital + Liabilities D. Capital + Inventory
3. Debts are
A. amounts owed to the business
B. amounts the business owes to other businesses.
C. the amount of money held by the business
D. they are suppliers of the business
4. Mr Jack bought a car for $10 000.If he wants a profit of $3 000.How much must be the selling
price?
A. $7 000 B. $23 000 C. $15 000 D.13 000
5. Which of the following is not an asset?
A. machinery B. truck C. bank debt D. building
6. Purchased/Bought goods for $6 000
Sold them for $ 7 100
What is the profit?
A. $ 900 B. $1 100 C. $11 000 D. $800
7. What is an asset?
A. things owned by the business.
B. debts owned by the business.
C. money that is used to start a business.
D. things sold by the business.
8. Which of the following is an asset?
A. Machinery B. Bank loan C. Equipment D. Furniture
9. Assets ?? , Capital = $3000 , Liabilities = $4 000
Calculate the total assets
A. $7 000 B. $1 000 C. -$7000 D. $8 000
10. In a certain business, Assets =$5 700 and Capital =$4 500.Calculate the total liabilities in the
company.
A.$5 500 B.$3 300 C.$5 700 D.$2 300
Section B
Answer all questions in this section.
This section consists of 10 marks
Defining terms
11.What is capital?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________ [2]
12.Define
i) a liability?
_________________________________________________________________________________
_________________________________________________________________________________
__________________________________________________________________________ [2]
ii) an asset?
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________ [1]
13.Give one example of an asset.
_________________________________________________________________________________
14.Explain what is a loss?
__________________________________________________________________________________
____________________________________________________________________________ [2]
15.Define profit?
__________________________________________________________________________________
___________________________________________________________________________ [2]
16. What is to purchase?
__________________________________________________________________________________
___________________________________________________________________________ [1]
Section C
This section consists of 20 marks
Fill in the missing gaps.
17. Calculate Profit if
a) Selling price = $550
Buying price = $470
Profit =
b)Selling price = $12 800
Buying price = $11 500
Profit =
c)Mr Lee bought a box of 30 chocolates for $600.He later sold them for $35 each.
What is his profit?
Show working on the space below.
Profit =________________
[6]
18.Missing figures
a) Selling price = ??
Buying price = $75 000
Profit = $25 000
Calculate the selling price?
Selling price =____________
b) The selling price is $5 000 and the profit is $1 500.Find the buying price?
Buying price =________________ [6]
19.Calculate the percentage profit if
a) Selling price = $250
Buying price = $200
Percentage profit =____________
b) Mrs Tayo bought a car for $45 000 and later sold it for $50 000, Calculate the percentage profit.
Percentage profit = _____________
[6]
20.Calculating a loss
a) Selling price = $5 500
Buying price = $6 000
Calculate the loss?
Loss = __________________ [2]
