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CAPE Accounting 2015 U1 P1 PDF
CAPE Accounting 2015 U1 P1 PDF
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t. This tist consists of 45 items. You will have I hour and 30 minutes to answer them.
3. Do not be concerned that the answer sheet provides spaces for nrore at'lswers than there are
items in this test.
4. Each item in this test has four suggested answers lettered (A), (B), (C), (D). Read each item
you are about to answer and choose the correct answer.
5. On your answer sheet, find the number which corresponds to your item and shade the space
haviug the same letter as the answer you have chosen. Look at the sample itern below.
Sample ltem
The best answer to this item is "an expense", so (C) has been shaded.
6. If you want to change your answer, erase it completely before you fill in your new choice.
7. When you are told to begin, turn the page and work as quickly and as carefully as you can.
If you cannot answer an item, go on to the next one. You may return to that item later'
8. You may do any rough work in this booklet.
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9. You may use a silent, non-programmable calculator to answer items.
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I Copyright @ 2013 Caribbean Examinations Council
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1. Aecounting information that provides users 2. Fromthepointofviewoftheshareholders,
offinancialstatementswiththeassurancethat the MAIN duty of the external auditor is to
the infomation is free from errors and bias
demonstrates the characteristic of (A) adhere to generally accepted
auditing standards
(A) relevance (B) plan and perform the audit using
(B) reliability statistical techniques
(C) consistency (C) express an opinion on the reliability
(D) comparability of the finarrcialstatements
(D) exercise accuracy in conducting the
audit of financial statements
3. Acorporationreacquired5000ofitsownsharesat$4pershare. Whichofthefollowingisthe
journal entry to record this transaction?
4. On 15 January 2014, R. Sammy's advertising agency collected $6 000 from clients who were
billed for jobs done in December 2013. Using the accrual basis of accounting, how should the
accounts be affbcted bv the transactions on l5 Januarv 2014?
9' A firm issued 35 000 no par ordinary shares in exchange for a building which had a fair rnarket
value of $525 000. The entry to record this transaction is
I. duties
segregation of (A) Prudence
IL responsibilities
establishment of (B) Materiality
Ill. proper documentation (C) Historical cost
IV. assets
physical safeguard of (D) Going concern
(A) I only
(B) I and ll only 15. 'Ihepreparationandpresentationoffinancial
(c) I, II and III only statements of linrited liability businesses
(D) I, II and IV only are regulated by
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(A) $ 2s 000
(B) $ s0 000 Item 33 refers to the following information.
(c) $400 000
(D) $42s 000 Alata's financial position at the end of the
year is given as follows:
) (A) 0.20:r
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(B) 0.30:l
(C) 1.25:I
(D) 2:50:l
34. In preparing a statement of cash flows, 38. During periods of inflation or deflation, the
which of the following transactions would historical cost model for financial reporting
be considered an investing activity? is deficient becattse the rePorts
(A) Sale of equipment at book value (A) use numerous estimates for revenue
(B) Declaration of a cash dividend and expenses
(C) Sale of merchandise on credit (B) recognize revenue and expenses
(D) Issuance of a note payable before they are realiz'ed
(C) are published three years prior to
the rePort date
35. The change in cash fortheyearforaparticular (D) add and subtract dollars with
company is $4 500. If cash flow from different Purchasing Power
investing activities is $46 200 and cash flow without adjusting for those
from financing activities is $34 400, what is differences
the cash flow from operating activities?
(A) 6.e2
(B) t1.2s
(c) 6s.54
(D) t62.s0