AS & A Level Accounting (9706) — October–November 2023, Paper 12

Which list is a long-term source of additional funds for a limited company? Options: A bank loan, bonus issue of shares, debenture issue B bank loan, leasing of premises, rights…

Which statements describe advantages of maintaining full accounting records? 1 A more complete assessment of business performance is possible. 2 Book-keeping costs are minimised.…

Maria recorded a cheque for $475 received from Josh, a credit customer. Josh had deducted a 5% cash discount. The cheque has now been returned as dishonoured. What is the correct…

A business purchased a shop and incurred the following costs: Item $ --- --- purchase price of the shop 680 000 legal fees incurred in the purchase of the shop 7 200 cost of…

A used motor vehicle was part exchanged for a new motor vehicle. The balance of the purchase cost of the new motor vehicle was settled by cheque. What were the entries to record…

A non-current asset of a business cost $300 000 in 2021. It is depreciated using the reducing balance method at the rate of 40% per annum. A full year's depreciation is provided…

A business received $100 cash from a credit customer in settlement of a debt. When recording it, an error of commission was made. Which statement about the debit and credit…

A company's trial balance includes a suspense account. It was found that the only errors were discounts received of $240 and discounts allowed of $312, which had both been entered…

Which statements describe the benefits of preparing a bank reconciliation statement? 1 checks the accuracy of transactions recorded on the bank statement 2 ensures that cash in…

A trader's cash book shows a debit balance of $12 460 at 30 April. Bank charges of $4500 have not been entered in the cash book. A cheque for $14 470 received from a credit…

A credit customer gave cash to a sales ledger clerk in part settlement of her debt. The clerk was dishonest and kept the cash for himself. He entered the receipt in the customer's…

The following information is available: Item $ --- --- balance of trade receivables at the start of the year 48 000 balance of trade receivables at the end of the year 65 300…

At a business's financial year-end there were expenses owing, expenses prepaid, income owing and income received in advance. How will the ledger account balances brought down at…

A business prepared its statement of profit or loss for the year ended 31 December. During that year, on 30 April, a non-current asset had been sold. The following information is…

The owner of a trading business prepared draft financial statements for the year ended 31 December. It was then discovered that the following transactions occurring during the…

A business sells some inventory for $80 on credit. This originally cost $50. How does this affect the statement of financial position? Options: A current assets: decrease by $30;…

Which entries are made to record interest on capital in partnership accounts? Options: A Debit appropriation account; Credit capital account B Debit appropriation account; Credit…

L and M are in partnership, sharing profits and losses in the ratio of 3:2 respectively. For the year ended 31 March, their statement of profit or loss showed a profit for the…

Which reserves are revenue reserves? 1 general reserve 2 retained earnings 3 revaluation reserve 4 share premium account Options: A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

A limited company has the following in its statement of financial position at 31 March: equity $ --- --- ordinary share capital 200 000 retained earnings 82 500 share premium 80…

A company has calculated inventory turnover periods for two successive years: year inventory turnover in days --- --- 1 90 2 120 Company directors have suggested the following…

The following information is available for a business at the end of its financial year: Item $ --- --- credit purchases 140 000 credit sales 220 000 total purchases 160 000 total…

A business commenced trading on 1 January. The purchases and sales of inventory for January were as follows: date purchases sales --- --- --- January 4 3 at $200 each - January 13…

A company has been asked to quote a price for a specific job. Estimated costs are as follows: Item $ --- --- direct materials 2000 direct labour 3300 Overheads are charged at 50%…

A manufacturing business has a service department, X, and production departments, Y and Z. Department Z is labour intensive. How is the overhead absorption rate set for department…

What would cause overheads to be under absorbed? Options: A Overhead absorbed is greater than overhead budgeted. B Overhead absorbed is less than overhead budgeted. C Overhead…

A business produces two types of product, P and Q, for the month of January. Overheads are absorbed using direct labour hours. The production details are as follows: Item P Q ---…

Which statements about marginal costing are correct? 1 Contribution is the difference between sales revenue and total production costs. 2 Costs are classified as variable costs or…

The following information relates to a manufacturing business: Item Value --- --- production for the period 2400 units closing inventory 400 units direct material costs $12 000…

Which statement reflects how cost-volume-profit (CVP) analysis can help with management decision-making? Options: A separating out fixed and variable elements of cost B setting…