AS & A Level Accounting (9706) — October–November 2024, 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 statements are true of a bank overdraft? 1 it is long-term finance 2 it is short-term finance 3 it is of fixed amount 4 it is of variable amount up to a limit Options: A 1…
Answer this question and get it marked →Marcus bought a non-current asset. Instead of paying in full he decided to pay in instalments over the next six months. What was the effect of his decision during the next six…
Answer this question and get it marked →A business sells a non-current asset for cash. The disposal account includes entries for the cost of the asset and the sales proceeds. Which books of prime entry are used? cost of…
Answer this question and get it marked →The owner of a business received an order from a customer on the last day of the financial year, 31 December, and despatched the goods on the same day. The goods were invoiced to…
Answer this question and get it marked →Details regarding the purchase of a non-current asset are as follows: Item $ --- --- cost of new machine 20 000 expected residual value 5000 installation cost of new machine 3000…
Answer this question and get it marked →A depreciated non-current asset is revalued upwards. What is the effect of this? capital reserve revenue reserve --- --- --- A decrease no effect B increase no effect C no effect…
Answer this question and get it marked →A business depreciates its non-current assets at 20% using the straight-line method. Depreciation is calculated on a time basis in the year of acquisition and disposal. Item $ ---…
Answer this question and get it marked →The following errors were found after a suspense account was opened. 1 A cash purchase of goods for resale for $450 had been completely omitted from the books. 2 A payment for…
Answer this question and get it marked →A business is preparing a bank reconciliation statement. The following information is available. Item $ --- --- uncleared lodgements 3450 unpresented cheques 2950 cash book…
Answer this question and get it marked →Which sources of information will be required to prepare a sales ledger control account? 1 cash book 2 general journal 3 sales and sales returns journals Options: A 1, 2 and 3 B 1…
Answer this question and get it marked →The opening balance on a purchases ledger control account was $18 400. The following errors or omissions were then discovered. 1 A supplier's invoice for $860 had been entered as…
Answer this question and get it marked →What is a purpose of financial statements? Options: A to aid the managers in running the business B to allow the owner to take drawings C to ensure a profit is made D to ensure…
Answer this question and get it marked →A business owner provided the following information at the end of his first year of trading. Item $ --- --- closing inventory 15 000 total payments to suppliers 60 000 amount…
Answer this question and get it marked →Lu had the following capital account balances. End of year 1 End of year 2 --- --- $45 700 $63 400 During year 2 the following took place: 1 cash drawings $33 000 2 personal motor…
Answer this question and get it marked →A business maintains an allowance for irrecoverable debts of 2% of trade receivables. At the beginning of the financial year on 1 January the trade receivables total was $48 000.…
Answer this question and get it marked →Anne and Margaret have formed a partnership but have not made a partnership agreement. Which statement is correct for this situation? Options: A any loan made to the partnership…
Answer this question and get it marked →P and Q are in partnership sharing profits and losses equally. The following information is available in respect of P. Item $ --- --- current account credit balance at start of…
Answer this question and get it marked →Which statements are correct? 1 capital reserves arise from normal trading activities 2 capital reserves can be used to pay dividends 3 revenue reserves may be used when bonus…
Answer this question and get it marked →The following information is provided for a company for the financial year ended 31 March. Item $ --- --- revenue 7 200 000 administrative expenses 320 000 finance costs 150 000…
Answer this question and get it marked →Which statement is a limitation of accounting ratios? Options: A they do not aid comparison with the business's past performance B they do not help with future decision making C…
Answer this question and get it marked →A business provided the following information at the end of a financial period. Item $ --- --- total purchases for the period 700 000 cash purchases during the period 200 000…
Answer this question and get it marked →Which cost will increase as production decreases? 1 fixed costs per unit 2 total fixed costs 3 total variable costs 4 variable cost per unit Options: A 1 only B 1 and 3 C 2 and 4…
Answer this question and get it marked →X Limited leases a piece of equipment to perform quality inspections. This costs $8000 per annum plus $2 for each inspection performed. An inspection is performed on every tenth…
Answer this question and get it marked →A business uses the weighted average cost (AVCO) method of inventory valuation. During March the following transactions took place. Date Transaction --- --- 1 March opening…
Answer this question and get it marked →Ammu provided the following information about a specific job to make jewellery for a wedding. 1 Cost of materials required is $10 000. 2 Ammu needs 10 hours at $125 per hour to…
Answer this question and get it marked →Which statement about absorption costing is correct? Options: A It aids the preparation of budgets. B It follows the matching/accruals concept. C It is the best costing method for…
Answer this question and get it marked →The canteen costs of a business have been apportioned to production departments 1 and 2. Total canteen costs apportioned to production department 1 were $40 200. Of these, $3900…
Answer this question and get it marked →What is a limitation of marginal costing? Options: A Contribution per unit varies with output. B Inventory valuations vary more than under-absorption costing. C It can cause over…
Answer this question and get it marked →A company has the following budgeted information for May. Item $ --- --- selling price per unit 120 variable costs per unit 80 total fixed costs 56 000 The company is planning to…
Answer this question and get it marked →Why is cost-volume-profit analysis useful for management? Options: A It gives a more accurate value for inventory. B It helps with long-term decision making. C It makes it easier…
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