AS & A Level Accounting (9706) — February–March 2023, Paper 12

30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.

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Question 1 · 1 mark

Why did Amitav prefer to form a partnership with Lennie rather than set up as a sole trader? Options: A Amitav was certain they could work without disagreements. B Lennie had a…

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Question 2 · 1 mark

A credit customer cleared her debt of $600 after deducting a cash discount of $12. How would the customer account appear in the books of the supplier after the payment has been…

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Question 3 · 1 mark

What is the advantage of keeping a full set of double entry books of account? Options: A Account balances are available through the year. B Business assets and owner's assets can…

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Question 4 · 1 mark

At the start of a financial period, the owner's capital account of a business showed a balance of $85 000. During the period, the owner introduced to the business a private…

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Question 5 · 1 mark

A business has incorrectly recorded a vehicle purchase as a vehicle repair. The business does not charge depreciation on assets in the year of purchase. What is the effect of this…

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Question 6 · 1 mark

Non-current assets at the end of Year 1 were recorded as cost, $500 000, and carrying value, $360 000. During Year 2, certain assets were sold. They had originally cost $100 000…

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Question 7 · 1 mark

The cost of repainting a property was debited to the property account. Which type of error was made? Options: A commission B compensating C original entry D principle

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Question 8 · 1 mark

A trial balance does not balance. The difference has been entered in a suspense account. The following errors are found. 1 A cash payment of $630 for rent has been credited in the…

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Question 9 · 1 mark

What are the benefits of preparing a bank reconciliation statement? 1 acts as a deterrent to fraud 2 identifies out-of-date cheques 3 prevents the business going into overdraft 4…

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Question 10 · 1 mark

At the month end, a business bank statement showed a credit balance of $12 697. This did not agree with the cash book balance. The following differences were found. 1 A cheque…

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Question 11 · 1 mark

Which statements identify the advantages of using a purchases ledger control account as part of the accounting system? 1 Compensating errors within the purchases ledger can be…

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Question 12 · 1 mark

The sales ledger control account of a trader showed a debit balance of $28 500 at the end of the financial period. This did not agree with the total of the individual trade…

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Question 13 · 1 mark

At the start of the year on 1 January, a business had an inventory of stationery which had cost $3740. On that date, $1200 was owed to suppliers for stationery. During the…

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Question 14 · 1 mark

The following information is extracted from the records of a business for a financial year. $ --- --- at 1 January: rent paid in advance 4 000 during the year ended 31 December:…

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Question 15 · 1 mark

Which items would affect a sole trader's gross profit? 1 carriage inwards 2 cash discounts allowed 3 commission received 4 trade discounts received Options: A 1 and 4 B 1 only C 2…

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Question 16 · 1 mark

John and Mary are in partnership. After the first year of operation, the current accounts of both partners had a debit balance. What might have caused the debit balances? 1…

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Question 17 · 1 mark

The following information is available for a partnership at the end of the financial year. $ --- --- residual loss 3 000 total salaries to partners 5 000 total interest on capital…

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Question 18 · 1 mark

A limited company intends to issue shares at a price above the par value. Which items, apart from the bank balance, will be affected by the share issue? Options: A share capital,…

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Question 19 · 1 mark

The following information is available for a limited company for a financial year ended on 31 December. $ --- --- total equity on 1 January 492 000 profit for the year 70 500…

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Question 20 · 1 mark

A business has a rate of inventory turnover of 17 times. What is the numerator in the calculation? Options: A average inventory B closing inventory C cost of sales D credit sales

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Question 21 · 1 mark

The year-end statement of financial position of X Limited at 31 December shows the following: $000 --- --- non-current assets 1350 current assets 140 ordinary share capital 900…

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Question 22 · 1 mark

Which statement is correct? Options: A Direct costs change in direct proportion to changes in levels of activity. B Fixed costs remain as a constant proportion of total costs when…

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Question 23 · 1 mark

A manufacturer operates a bonus system. He provides the following information. --- --- output required from each worker 175 units time allowed to complete output 10.5 hours actual…

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Question 24 · 1 mark

A job cost sheet showed the following estimates. $ --- --- materials 680 labour at $20 per hour 200 overheads at $10 per labour hour 100 profit 280 price of job 1260 The job…

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Question 25 · 1 mark

What is the most suitable basis to apportion power costs between two production centres? Options: A capital cost of machinery B maintenance cost of machinery C number of employees…

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Question 26 · 1 mark

A manufacturing business makes a single type of product. It has two production departments, machining and assembly. A maintenance department provides services to the production…

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Question 27 · 1 mark

The following data applies to the budget for a job. --- --- direct materials $4800 direct labour $2200 machine hours 240 Direct labour is employed at an hourly rate of $11.…

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Question 28 · 1 mark

A company has two production departments, manufacturing and assembly, and a stores service department. The overheads are apportioned to each department using the appropriate…

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Question 29 · 1 mark

What does an increase in the marginal cost of a product cause? Options: A decreased contribution B decreased fixed costs C increased contribution D increased contribution to sales…

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Question 30 · 1 mark

Which statements describe the usefulness of cost-volume-profit analysis? 1 to see the relationship between costs and revenue at different levels of activity 2 to set the selling…

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