AS & A Level Accounting (9706) — May–June 2024, Paper 11

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

Jamie is setting up a business. There are three details which are important to Jamie. 1 Jamie wants to have a salary for his work in managing the business. 2 Jamie wants full…

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Question 2 · 1 mark

The owner of a business paid for business stationery using her personal funds. Which ledger account will be credited? Options: A capital B cash C drawings D stationery

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Question 3 · 1 mark

Why does a business charge depreciation? 1 to be able to replace an asset at the end of its useful life 2 to charge the cost of an asset to each period that benefits from its use…

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Question 4 · 1 mark

The following information relates to the non-current assets of a business that was formed three years ago. Item $ --- --- cost at start of year 1 10 000 accumulated depreciation…

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Question 5 · 1 mark

Why does a business maintain a sales ledger control account? Options: A to ensure that statements are sent out promptly to customers B to record the total of discounts received C…

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Question 6 · 1 mark

Iga is worried that her book-keeper may have been forgetting to record credit notes received. What should she do to find out? 1 check purchases ledger balances against statements…

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Question 7 · 1 mark

A trial balance does not balance and a suspense account is opened. On investigation, the following errors are found. 1 The debit balance of $450 on the carriage outwards account…

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Question 8 · 1 mark

The table shows extracts from a business's bank reconciliation. Item $ --- --- balance per cash book at 31 December 2075 debit balance per bank statement at 31 December 2250…

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Question 9 · 1 mark

The total of trade payables balances in Konrad's purchases ledger was $57 400. The following errors were then discovered. Item $ --- --- discount allowed overcast in cash book…

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Question 10 · 1 mark

Which statement is not correct? Options: A Control accounts reveal whether there are errors in sales and purchases ledgers. B Credit balances in a sales ledger are trade…

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Question 11 · 1 mark

A business maintains an allowance for irrecoverable debts of 5% of trade receivables. At the end of the current financial year, trade receivables totalled $8000 which was 20% less…

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Question 12 · 1 mark

A trader does not keep full records but supplies the following information. Item 1 January $ 31 December $ --- --- --- bank (debit) 4240 6320 cash balance 264 271 Cheques issued…

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Question 13 · 1 mark

Which statement(s) are true of drawings? 1 They are a reduction in the owner's investment. 2 They have to be less than the profit for the year. 3 They represent the salary paid to…

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Question 14 · 1 mark

Vikram is a partner in a business. Partners do not receive salaries or interest on capital, but they are charged 5% interest on the balance of their drawings account. Vikram made…

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Question 15 · 1 mark

A partnership operates without having a partnership agreement. Which rules will apply to the partnership? 1 Partners will be entitled to interest on any loans made to the business…

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Question 16 · 1 mark

L and M are in partnership, sharing profits and losses in the ratio of 3 : 2 respectively. The following information was available at year end. Item L $ M $ Note --- --- --- ---…

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Question 17 · 1 mark

Which statements about debenture interest are correct? 1 Interest percentage rate will always be higher than dividend per share. 2 Interest will be deducted in the statement of…

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Question 18 · 1 mark

A company has the following reserves. Item $ --- --- share premium 60 000 revaluation reserve 75 000 general reserve 10 000 retained earnings 21 500 The directors wish to make a…

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Question 19 · 1 mark

A business provided the information shown for a period. Item $ --- --- sales revenue 1 500 000 purchases 1 000 000 inventory at end of the period 50 000 The rate of inventory…

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Question 20 · 1 mark

When comparing with the previous year, a trader finds that his gross profit margin has increased and his trade receivables turnover has decreased. Which statement would explain…

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Question 21 · 1 mark

B Limited had credit sales for the year of $3 285 000 and trade receivables at year end of $405 000. The sales director believed that if cash discounts had been given, then trade…

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Question 22 · 1 mark

A business makes wedding dresses. Each machinist is paid $30 a day and each supervisor $40 a day. Each supervisor can work with up to 10 machinists and each machinist can produce…

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Question 23 · 1 mark

Which statement best describes variable costs? Options: A costs that are the same in total up to a certain level then increase with output B costs that are the same in total over…

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Question 24 · 1 mark

P Limited makes wooden chairs at a unit cost of $70 each. It has received an order to produce a batch of 1000 wooden chairs with padded seats. This requires $6000 of additional…

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Question 25 · 1 mark

Why would overheads be over absorbed? Options: A Overheads absorbed is less than overheads budgeted. B Overheads absorbed is more than overheads budgeted. C Overheads incurred is…

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Question 26 · 1 mark

A company makes one product with a selling price of $384 per unit. The costs are as follows: Cost per unit --- --- direct materials 4 kilos at $8 per kilo direct labour 8 hours at…

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Question 27 · 1 mark

Which statements about marginal costing are correct? 1 It enables a business to make the best use of its resources when there is a limiting factor. 2 It ensures that decisions…

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Question 28 · 1 mark

A company makes and sells a single type of product. The budgeted information for 6000 units is as follows: Item $ --- --- variable manufacturing costs 90 000 variable selling…

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Question 29 · 1 mark

The diagram shows a break-even chart. It plots revenue and costs ($) on the vertical axis against level of activity on the horizontal axis. Three lines are drawn from the origin…

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Question 30 · 1 mark

What is not an assumption in cost-volume-profit analysis? Options: A The unit fixed cost is constant. B The unit selling price is constant. C The unit variable cost is constant. D…

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