IGCSE Accounting (0452) — October–November 2024, Paper 12

A trader prepares financial statements each year. What do these help the trader to do? A calculate the amount owing to credit suppliers B calculate the cash drawings C check the…

A trader bought new fixtures. He paid half the purchase price in cash and agreed to pay the balance at a later date. How does this purchase affect the accounting equation? assets…

Which account is not kept in the nominal ledger? A capital B cash C inventory D purchases

On 15 February Kalou made the following entries in his accounts. debit $ credit $ bank 228 Droghba 240 discount allowed 12 Which transaction was being recorded? A Droghba paid…

Ranjit is a credit customer of Balbir. In April the following activities took place. Balbir sold goods on credit to Ranjit. Ranjit advised Balbir that some of the goods were…

What is an advantage to a business of maintaining books of prime entry? A A trial balance can be extracted directly from books of prime entry. B Similar transactions are listed…

Which items appear on the debit side of a trial balance? 1 amounts owed from credit customers 2 discount received from credit suppliers 3 drawings made by the owner 4 overdrawn…

A trader had prepared her year-end financial statements. She later discovered that an adjustment to reduce the provision for doubtful debts by $100 had not been made. How did this…

A trader’s draft income statement showed a profit for the year of $24 500. The following errors were later discovered. 1 No adjustment had been made for accrued income of $8000. 2…

The bank statement of a business had a credit balance of $2690 on 31 October. At that date cheques issued which had not been presented totalled $850. What was the bank balance in…

The bank column of a trader’s cash book showed an overdrawn balance of $1200. When the trader compared the cash book with the bank statement he found the following items were not…

What is an advantage of preparing a monthly sales ledger control account? A It is necessary to prepare the income statement. B It helps to reduce the possibility of fraud . C It…

A summary of Jim's cash book for the year included the following: $ total cheques paid to suppliers 3750 total discount received 65 Which entries are made in his purchases ledger…

Hamid owns a grocery store. He bought a motor vehicle, $2000, and fuel, $50. Both of these amounts were incorrectly debited to the purchases account. What was the effect of this…

Which statements are correct about depreciation? 1 It is a non-cash expense item. 2 It is an estimated amount. 3 It is the amount of money set aside to replace a non-current…

A machine with an original cost of $10 000 had been depreciated for two years at the rate of 10% per annum using the straight-line method. It was then sold for cash with the loss…

Abdul is a trader. He rents out part of his warehouse to other businesses. Abdul is preparing his financial statements for the year ended 31 December. His rental income account…

What is the journal entry required to close the irrecoverable debts account at the year end? account to be debited account to be credited A income statement irrecoverable debts B…

After preparing draft financial statements at the end of her first year of trading, Lucy discovered two errors. 1 Damaged inventory had been valued at its cost price of $340. It…

Which items would appear in the income statement for an accountancy business? gross profit profit for the year surplus A ✓ ✓ ✗ B ✓ ✗ ✓ C ✗ ✓ ✗ D ✗ ✗ ✓

A business provided the following information. $ long-term loan 20 000 trade receivables 12 000 trade payables 9 700 bank overdraft 2 000 prepaid insurance 400 accrued wages 1 000…

What is an advantage to a trader of forming a partnership? A continuity of existence B decision making is quicker C profits are shared D risks are shared

Which items should be entered in the appropriation account of a partnership? interest on interest on partners’ partners’ partners’ drawings drawings loans A ✓ B ✓ ✓ C ✓ ✓ D ✓ ✓

X Limited provided the following information. $ ordinary share capital 300 000 general reserve 50 000 retained earnings 35 000 8% debenture 60 000 What was the total of the…

Which item is shown in the income statement and in the statement of changes in equity of a limited company? A accrued interest on debentures B ordinary share dividend paid C…

The Daylee Sports Club was formed in January. During its first year the club purchased equipment costing $5000, paying by cheque. Which of the club’s financial statements are…

The following ledger account appeared in the books of a club for the year ended 31 December. Subscriptions account $ $ Jan 1 Balance b / d 2 000 Dec 31 Bank 29 000 Dec 31 Income…

After a manufacturing account had been completed it was discovered that wages paid to factory cleaners had not been included. Which items in the manufacturing account would change…

W Limited manufactures motorbikes. The following information relates to the first year in business. $ purchases of motorbike parts 40 000 wages of factory workers 25 000…

Anya did not keep a full set of double entry records but provided the following information. $ At 1 February 2022 capital 10 000 At 31 January 2023 bank overdraft 1 500 equipment…

A jewellery retailer marks up his goods by 100%. He provided the following information. $ revenue 68 200 discount received 1 080 profit for the year 18 395 What was the total of…

Omar had an increase in his gross profit margin. What could have caused this? A a decrease in the selling price of his goods B an increase in the quantity of goods purchased C a…

Who would be interested in the value of non-current assets which a business has available as security? A bank manager B credit customers C employees and trade unions D government…

Which accounting principle is the accounting equation based on? A duality B going concern C materiality D realisation

Which qualitative factor requires that financial information is provided in a timely manner so that it can be used for decision making? A comparability B relevance C reliability D…