AS & A Level Accounting (9706) — May–June 2025, Paper 13
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →What are disadvantages of operating as a partnership compared to operating as a sole trader? 1 Partners may be liable for the actions of the other partners. 2 Profits have to be…
Answer this question and get it marked →A business has the following balances at the end of a financial period. $ --- --- non-current assets 102 000 trade receivables 39 000 trade payables 27 000 profit for the period…
Answer this question and get it marked →A sole trader uses the double entry system to record their business transactions. Which transaction does not follow the double entry rules? A An expense account is debited at the…
Answer this question and get it marked →A business owns a property which is rented out to tenants. Which of the following costs should be treated as capital expenditure? A extending the kitchen area B legal fee for a…
Answer this question and get it marked →Which statements describe factors that may cause a non-current asset to depreciate? 1 a reduction in the estimated residual value of the non-current asset 2 the introduction of…
Answer this question and get it marked →A business purchased a non-current asset which had an estimated life of 10 years. It is depreciated using the straight-line method. At the date of sale, 5 years' depreciation had…
Answer this question and get it marked →A business maintains control accounts as part of its double entry system. Which error would cause an entry in the suspense account? A A purchases journal total of $9870 is…
Answer this question and get it marked →Which item is not likely to be updated in the cash book when preparing the bank reconciliation statement? A direct debit B dishonoured cheque C standing order D unpresented cheque
Answer this question and get it marked →A draft statement of financial position shows a bank balance of $1400. The following information is now available. $ --- --- cheques issued but not yet cleared by the bank 150…
Answer this question and get it marked →Which item should be recorded as a debit entry in a sales ledger control account? A contra entry between the sales ledger and the purchases ledger B interest charged on an overdue…
Answer this question and get it marked →Some errors were made when preparing a purchases ledger control account. The incorrect balance was $15 830. The following errors were discovered. 1 Refunds of $270, from credit…
Answer this question and get it marked →The draft profit for the year of a business was $84 000. The following errors were then discovered. 1 Discounts received of $2500 had been debited to the discounts allowed…
Answer this question and get it marked →Which items would increase the profit for the year? 1 increase in allowance for irrecoverable debts 2 decrease in allowance for irrecoverable debts 3 increase in prepaid rent…
Answer this question and get it marked →Sam was unable to conduct a physical count of inventory at 31 December 2024. On 3 January 2025, inventory was sold to Abdul for $11 950. The cost price of this inventory was…
Answer this question and get it marked →Why does a sole trader account for accrued income? A so that current liabilities are not overstated B so that current liabilities are not understated C so that profit is not…
Answer this question and get it marked →The following information is available for a sole trader's business at the end of the financial year. $ --- --- cost of sales 540 000 expenses 325 000 profit for the year 63 000…
Answer this question and get it marked →A partnership maintains both capital and current accounts for its partners. What is the correct accounting entry for recording interest on capital for partner X? account to be…
Answer this question and get it marked →Arnold is in a partnership with Bradley. Their financial period ends on 31 December. One of the terms of their partnership agreement is that interest is charged on drawings on a…
Answer this question and get it marked →Which statement is correct in relation to the financial statements of limited companies? A Debentures are presented as part of the total equity. B Dividend paid is shown in the…
Answer this question and get it marked →A company provides the following information about its equity. $ --- --- 150 000 shares $1 each 150 000 share premium 75 000 general reserve 125 000 retained earnings 25 000 The…
Answer this question and get it marked →Which statements about ratios are correct? 1 Ratios are affected by accounting policies. 2 Ratios can be compared with industry averages. 3 Ratios generally ignore inflation. 4…
Answer this question and get it marked →A limited company achieved a return on capital employed of 5% for the previous financial year. The following additional information is available. $ --- --- equity 1 000 000 10%…
Answer this question and get it marked →A business rents machinery for use in its factory. The rental cost of a machine is $12 000. Each machine has the capacity to produce 60 000 units. The business provided the…
Answer this question and get it marked →A company sells a product for $12 per batch. The variable cost is $4 per batch. Fixed costs are absorbed based on a normal activity level of 100 batches at $3 per batch. What is…
Answer this question and get it marked →Which statements correctly compare the benefits of absorption and marginal costing? absorption costing marginal costing --- --- --- A avoids the need to separate fixed costs and…
Answer this question and get it marked →The following table shows details of production for a week. --- --- budgeted production overheads $100 000 actual production overheads $80 000 expected production 5000 units…
Answer this question and get it marked →A business has produced the following budget. $ --- --- revenue 700 000 contribution 560 000 fixed production costs 350 000 fixed non-production costs 20 000 What is its budgeted…
Answer this question and get it marked →How is a margin of safety calculated? A actual total contribution minus break-even contribution B actual total contribution minus budgeted total contribution C budgeted total…
Answer this question and get it marked →A business had a contribution to sales ratio of 40%. The following information is available. $ --- --- sales revenue 100 000 fixed costs 30 000 profit 10 000 It is predicted that…
Answer this question and get it marked →The actual output for a business is lower than forecast. Which costs are usually the same as forecast? 1 fixed cost per unit 2 total fixed cost 3 total variable cost 4 variable…
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