AS & A Level Accounting (9706) — October–November 2023, Paper 11
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →Which sources are external short-term sources of finance for a limited company? 1 bank overdraft 2 retained earnings 3 share capital 4 trade credit Options: A 1 and 2 B 1 and 4 C…
Answer this question and get it marked →A sole trader settles an account payable in full with her own money. This transaction has not been recorded. What will be the effect when this is recorded? Options: A asset…
Answer this question and get it marked →Sally had $1000 in the bank when she paid $1500 to buy goods for resale. The bank allowed the payment. How was this transaction recorded in Sally's books of account? Options: A…
Answer this question and get it marked →Which items identify revenue expenditure and a capital receipt? Options: A revenue expenditure: carriage inward on a non-current asset; capital receipt: issue of debentures B…
Answer this question and get it marked →Which statement identifies why depreciation is provided on non-current assets? Options: A so that the cost is allocated to periods that benefit from them B so that the realisation…
Answer this question and get it marked →New equipment costing $40 000, with an estimated residual value of $6000, was acquired at the beginning of the year on 1 January. On the same date the business made the following…
Answer this question and get it marked →Which error would not be identified by preparing a trial balance? Options: A A contra entry of $650 had been entered twice in the sales ledger control account. B A purchase…
Answer this question and get it marked →During the year a sole trader withdrew $3000 cash from the business bank account. Accounting entries made were a debit of $300 to the drawings account and a credit of $3000 to the…
Answer this question and get it marked →A company's bank statement showed a credit balance of $2000. The following issues were found: 1 A receipt of $2700 and a payment for $3000 were recorded on the bank statement.…
Answer this question and get it marked →Why might a business maintain a sales ledger control account as part of the double entry accounting system? 1 to facilitate prompt preparation of financial statements 2 to help…
Answer this question and get it marked →The purchases ledger control account showed a balance of $79 500 before the following errors were taken into account: 1 A contra of $5300 between the purchases and sales ledger…
Answer this question and get it marked →A business has trade receivables of $52 000 at the year-end. The allowance for irrecoverable debts in the draft statement of financial position is $3000. The allowance for…
Answer this question and get it marked →A trader prepared her financial statements but made no adjustments for accrued rent receivable at the end of the year. What is the effect of this omission? Options: A current…
Answer this question and get it marked →A sole trader calculated her draft profit for the year as $50 000. She asked her accountant for advice regarding four issues which she thought might affect the draft profit: 1 A…
Answer this question and get it marked →Which items in the books of a partnership would increase the profit available for distribution to the partners? 1 discount received 2 interest on capital 3 interest on drawings 4…
Answer this question and get it marked →L and M are in partnership, sharing profits and losses in proportion to their capital invested. The following information is available: Item $ --- --- capital: L 68 000 capital: M…
Answer this question and get it marked →Which statements describe the advantages of a rights issue of shares? 1 Additional funds for a company can be raised cheaply. 2 Control of the company remains with existing…
Answer this question and get it marked →The following information is available for a limited company's financial year ended 31 December: 1 At 1 January the total equity was $350 000. This included 100 000 ordinary…
Answer this question and get it marked →Why would employees be interested in their employer's financial statements? Options: A to assess whether the business can continue to trade in the foreseeable future B to compare…
Answer this question and get it marked →A business received a five-year loan of $40 000. The loan was paid into the bank current account. What was the effect of the loan? Options: A current ratio: decreased; return on…
Answer this question and get it marked →The draft financial statements of a business for the year ended 30 June included the following: Item $ --- --- revenue 280 000 gross profit 60 000 It was subsequently discovered…
Answer this question and get it marked →The following information is available for a company: Item Value --- --- sales revenue for the year $1 600 000 debenture interest paid $60 000 gross profit margin 20% operating…
Answer this question and get it marked →What are the benefits of operating a just in time (JIT) system of inventory management? 1 increased efficiency 2 reduced warehouse costs 3 reduced waste Options: A 1, 2 and 3 B 1…
Answer this question and get it marked →Eight employees work in a team. Each employee is paid $16 an hour and the team share a group bonus between them, which is based on their output of product. For any production in…
Answer this question and get it marked →Which type of business is most likely to use a batch costing system? Options: A an aircraft manufacturer B a car component manufacturer C a ship construction yard D a wedding cake…
Answer this question and get it marked →A company is asked to make a new machine for a customer. It provides the following estimates: Materials will cost $1100. Labour will be 30 hours at a cost of $14 per hour. The…
Answer this question and get it marked →Which formula would be used to calculate an overhead absorption rate for a capital-intensive production process? Options: A labour hours / overhead costs B machine hours /…
Answer this question and get it marked →A company provides the following information: Item department X department Y --- --- --- budgeted overheads $150 000 $210 000 budgeted direct labour hours 2000 10 000 budgeted…
Answer this question and get it marked →A company makes and sells a single type of product. The following budgeted information is available: Item Value --- --- selling price $10 per unit sales volume 10 000 units…
Answer this question and get it marked →How is contribution calculated? Options: A sales revenue - absorption cost B sales revenue - fixed cost C sales revenue - marginal cost D sales revenue - total cost
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