WEEK ONE PRACTICE QUESTIONS

Question 1

On 1 January 2013 a business had net assets of $15,000 On 31 January 2013, net assets amounted to
£19,000. No capital had been introduced in January, but the owner had made drawings of $750. What
profits were made in January?

A $4,000

B $4,750

C $3,250

Question 2

On 1 January 2013 a business had net assets of $15,000 On 31 January 2013, net assets amounted to
£19,000. Additional capital of $1,000 had been introduced in January, but the owner had made drawings
of $400 What profits were made in January?

A $3,400

B $4,000

C $4,600

D $5,400

Question 3

On 1 January 2013 a business had net assets of $25,000 On 31 January 2013, net assets amounted to
£23,000. A loss of $7,000 had been made and the owner withdrew $1,000 to live on. What additional
capital was introduced to the business in January?

A $8,000

B $6,000

C $7,000

D $10,000

Question 4

On 1 January 2013 and 31 January 2013 a business had the following assets and liabilities:
 WEEK ONE PRACTICE QUESTIONS
1 January 31 January $

$ Cash 10,000 12,000

Owed to suppliers 3,000 4,000

Owed from customers 2,000 1,000

Equipment 8,000 10,000

Bank loan 2,000 5,000

No additional capital had been introduced, but the owner withdrew $800 to live on.

What profit or loss was made in January?

A $1,000 loss

B $5,800

C $200 loss

D $1,800

Question 5

Wilson has a basic salary of $2,000 for the month. His income tax on the salary is $350 and state benefit
contributions amount to $180. His employers also pay state benefit contributions of $210.

In June Wilson is also entitled to a bonus of $100 on which no tax or deductions are payable.

How much is Wilson’s take-home pay for June?

A $1,260

B $1,360

C $1,540

D $1,570

Question 6

Sue earns a basic rate of $5.00 per hour for a 35-hour week. She is paid time and a half for any
additional hours. Last week Sue worked 43 hours.

What is Sue’s gross pay for last week?

A $175
 WEEK ONE PRACTICE QUESTIONS
B $215

C $235

D $322.50

Question 7

From which account are wages and salaries paid directly to employees?

A Bank

B Payroll

C Wages and salaries control

D Wages and salaries expense

Question 8

A company has the following components in its wages calculations:

Gross wages calculated as $76,000

Deductions for employees’ taxes = $20,000

Deductions for employee pensions = £12,000.

Employer’s payroll tax calculated as $15,000 Employer’s pension contributions = $16,000

Which of the following is correct?

A Employees are paid $72,000 net; total employment cost to employer = $91,000

B Employees are paid $76,000 net; total employment cost to employer = $107,000

C Employees are paid $44,000 net; total employment cost to employer = $107,000

D Employees are paid $60,000 net; total employment cost to employer = $77,000

Question 9

Under most systems of tax, what do employers pay to employees?

A Gross wages

B Gross wages less employees’ deductions less employers’ payroll tax

C Gross wages less employees’ deductions

 WEEK ONE PRACTICE QUESTIONS
D Gross wages less employers’ payroll tax