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Zafar runs a transport business and has a fleet of motor vehicles. Which is a liability to Zafar?
A depreciation of motor vehicles for the year B motor vehicle expenses outstanding
C motor vehicle insurance paid in advance D stock of fuel for motor vehicles
Which accounting principle requires the financial transactions of a business to be treated separately from those of the owner?
A business entity B duality C going concern D matching
A business trains its staff to use computers. The only aspect recorded in the accounting records is the costs of the training courses and the computers. The value to the business of the new skills is not recorded. Which accounting principle is being applied?
A consistency B money measurement C prudence D realisation
John’s financial year ends on 31 December. In 2022 he paid $16 500 for advertising in the local newspaper. This was for 15 months to 31 March 2023. What will be recorded in John’s balance sheet at 31 December 2022?
A Accural $ 3300 B Accrual $ 13200 C Prepaid $ 3300 D Prepaid $ 13200
A debit note is issued by a business. Why has this debit note been issued?
A goods have been received from a supplier B goods have been returned by a customer
C goods have been returned to a supplier D goods have been sent to a customer
The difference on a trial balance is entered in a suspense account. It is found that $100 received from Hassan has been debited to the account of Hussein. Which entries will correct this error? 7
Freda started a business on 1 January. On 31 January her cash book showed that she had $2100 in the bank. On that date cheques not yet presented for payment totalled $600 and a deposit of $900 had not been credited by the bank. What was the balance shown on Freda’s bank statement on 31 January?
A $1500 credit B $1800 credit C $2400 credit D $2700 credit
Which group contains only revenue receipts?
A bank loan, rental income, sale of machinery B discount allowed, rates, sale of equipment
C discount received, rates, sales D insurance refund, rental income, sales
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During year ended 31 December 2008 a trader bought stock at $10 per unit.
He sold each unit for $20. At 31 December 2008 he had 1000 units in stock of which 100 units were only valued at $5 each.
What was the total value of stock at 31 December 2008?
A $9500 B $10 000 C $18 500 D $20 000
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On 1 January 2008 Maria had a stock of stationery valued at $60.
At 31 December 2008 her stock of stationery was valued at $90.
During the year Maria purchased stationery costing $250. Applying the matching principle, how much should be charged for stationery in the income statement for the year ended 31 December 2008?
A $220 B $250 C $280 D $310
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Which error affects the balancing of a trial balance?
A a purchase invoice, $2000, completely omitted from the books
B a sale on credit, $500, entered in the sales journal as $550
C purchase of a machine, $5000, entered in the purchases account
D the purchases journal undercast by $1000
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At the end of her financial year, Sara owes $50 for property tax. How will the adjustment for this affect Sara’s final accounts?
A decrease expenses and increase current assets
B decrease expenses and increase current liabilities
C increase expenses and increase current assets
D increase expenses and increase current liabilities
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Paul had sales of $400 000. His expenses were $100 000 and his net profit was $60 000. What was the gross profit as a percentage of sales?
A 40% B 60% C 75% D 85%
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Which error will require a correcting entry in a suspense account?
A cash paid to Gideon debited to Gibson’s account
B motor vehicles account omitted from the trial balance
C purchase of fixtures for cash debited to the purchases account
D no entry made for cash paid for stationery
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Maria maintains a provision for doubtful debts at 5% of the trade receivables at the end of each financial year.
On 31 December 2008 the trade receivables owed $25 000 and on 31 December 2009 the trade receivables owed $20 000.
How much will appear in Maria’s income statement for the year ended 31 December 2009?
A $250 credit B $250 debit C $1000 credit D $1000 debit
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Y bought a machine for $6000 and depreciated it at the rate of 20 % each year, using the reducing balance method. What is the total depreciation for years 1 and 2? \
A $1200 B $1440 C $2160 D $2400
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Janet and Lesley are partners and share profits equally.
The net profit before appropriation was $43 000. Janet receives a salary of $10 000 and interest on capital, $1000.
Lesley receives interest on capital, $2000. What is Janet’s total income from the business?
A $15 000 B $21 500 C $26 000 D $32 500
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Which account is contained in the sales (debtors) ledger?
A customer’s account B sales account C sales returns account D supplier’s account
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A trader purchased stock for $4000. At the Balance Sheet date the stock had a realisable value of $3000. The stock was shown in the Balance Sheet at $3000. Which accounting principle did the trader apply?
A business entity B money measurement C prudence D realisation
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Which would not be recorded in the accounting records of a business when applying the money measurement principle?
A cost of computers purchased B fees paid for staff computer training course
C new computer skills acquired by staff D repair bill for computers
Cambridge International Examinations General Certificate of Education Ordinary Level Principles of Accounts Paper 1 Multiple Choice October/November 2003 1 Hour 15 Minutes
Cambridge International Examinations General Certificate of Education Advanced Subsidiary Level and Advanced Level Accounting Paper 1 Multiple Choice May/June 2003 1 Hour
Cambridge International Examinations General Certificate of Education Ordinary Level Principles of Accounts Paper 1 Multiple Choice October/November 2003 1 Hour 15 Minutes
Cambridge International Examinations General Certificate of Education Advanced Subsidiary Level and Advanced Level Accounting Paper 1 Multiple Choice May/June 2003 1 Hour
