AS & A Level Accounting (9706) — October–November 2024, Paper 12

A business sells computers. When it values its inventory it excludes the value of the inventory that is more than one year old. This is because it may be obsolete. Which…

A purchases ledger clerk has to use a password to access the ledger in a computerised accounting system. What is the purpose of the password? 1 to limit access to the purchases…

Peter is a credit customer of John. He settles his account of $200. He pays by cheque and receives a cash discount of 5%. Which entries are made in John's books of account to…

Which item is capital income? Options: A bank interest received B proceeds from sale of business premises C rental income from property D sale of inventory to a customer

The draft profit for the year of a business is $53 000. During the year, the business acquired new premises and included the following costs in the cost of the premises. Item $…

Non-current assets can be depreciated using a number of methods. How is the most appropriate method decided? Options: A The method chosen improves the profit for the year of the…

Ryan purchased a van for $16 000 on 31 December 2021. It is his policy to apply 25% per annum reducing balance depreciation for each part of the year the asset is held. Ryan…

The totals of the trial balance of a business did not agree. The following errors were discovered. 1 The wages account had been overcast by $550. 2 The sales account had been…

In the books of a trader, discounts received of $1400 have been posted correctly in the suppliers' accounts but debited in the discounts allowed account. What are the correcting…

What are the advantages of preparing a bank reconciliation statement? 1 It eliminates the risk of fraud in banking transactions. 2 It helps to identify errors in bank statements.…

The cash book of a business showed a debit bank balance of $3900. This differed from the bank statement balance. The bank statement included bank charges of $250, a direct debit…

Which items will be entered in the debit side of the purchases ledger control account? 1 contra with sales ledger control account 2 discount received 3 returns inwards Options: A…

A company prepared a sales ledger control account. The balance did not agree with the total of the sales ledger balances, which were $42 650. The following errors or omissions…

The current assets of a company include the balances on both the rent payable and rent receivable accounts. What do these balances represent? rent payable rent receivable --- ---…

The following information is available for a sole trader. Item $ --- --- allowance for irrecoverable debts at the start of the year 1400 total trade receivables at the end of the…

A sole trader's statement of profit or loss shows the following information. Item $ --- --- opening inventory 5000 operating expenses 3000 profit for the year 5400 Closing…

L and M are in partnership, sharing profits and losses in the ratio of 3:2. They have the following current account balances. L M --- --- --- 31 March 2023 $3000 credit $4500…

A company issued shares at a premium. In which financial statements would the share premium appear? Options: A statement of changes in equity and statement of financial position B…

The statement of financial position of a company at 31 December showed the following: Item $ --- --- issued share capital: 200 000 ordinary shares at $1 per share 200 000 During…

Which ratio measures the efficiency of a business? Options: A acid test B mark-up C non-current asset turnover D return on capital employed

A company's return on capital employed decreased to 10% in the current year from 15% in the previous year. The directors have noted the following changes during the current year.…

A sole trader's cost of sales is $240 000. The gross profit margin is 20%. What are the sales for the year? Options: A $280 000 B $288 000 C $300 000 D $320 000

A business employs machinists to make a single type of product. As demand increases, more machinists are employed. Every time eight extra machinists are employed, one extra…

The inventory movements of a business in a three-month period are shown. month receipts units cost per unit issues units --- --- --- --- January 100 $5 January 200 $6 February 50…

A customer places an order for 20 000 bricks. Which costing method will the supplier use to price the order? Options: A batch B job C marginal D unit

The following budgeted and actual information is available. budgeted actual --- --- --- overheads $460 000 $420 000 labour hours 28 750 21 000 machine hours 9200 7000 What would…

The following information is available from the costing records. Item Value --- --- budgeted overheads cost $32 000 budgeted direct labour hours 4000 actual overheads cost…

Which items are included in the calculation of the contribution to sales ratio? fixed costs variable costs sales revenue sales volume --- --- --- --- --- A included included B…

The financial information for selling 6000 units in August was as follows: Item $ per unit --- --- selling price 40 variable costs 22 fixed costs 12 profit 6 The selling price was…

Which statements correctly describe cost-volume-profit analysis? 1 It assumes a linear relationship between costs, revenue and volume. 2 It can be used in 'what if' analysis. 3 It…