D) 2 x © Atrader provided the following information on 1 October 2018. $ Non-current assets 121000 Inventory 35000 Bank overdraft 9000 Trade receivables 29000 Trade payables 25000 Loan repayable 30 September 2020 70000 How much was the capital employed? A $30000 B $81000 © $151000 D_ $185000 Which is an intangible asset? A goodwill B inventory © office fixtures D trade receivables Mahendra designs computer systems. He provided the following information $ Fees prepaid by clients at the start of the year 2120 Fees received from clients during the year 42150 Fees owing by clients at the end of the year 2840 How much would be entered for fees in the income statement? A $37190 B $41430 Cc $42870 D = $47110 MC (Exam D), (1) f) {14) 5) 6) » , ® wi 4 hat does the term ‘limited Nabilty’ mean in relation to a company? A Acompany can only issue a limited number of shares. B_ Acompany can only pay a fixed amount of dividends. © Shareholders are not at risk of losing personal possessions. D Shareholders’ lability is not limited to the amount paid for their shares. ty Pia sells two products, X and Y. She provided the following information about her inventory at the year end. Product | Cost $ | Selling price $ x 1750 1850 T 924 858 ‘What was the total value of inventory to be included in the financial statements? A $2608 $2674 B © $2708 D $2774 What is the role of a book-keeper? A toadvise on business plans B _ toanalyse the profit or loss for the period _ tomaintain records of financial transactions D_ to prepare financial statements Baljit paid rent, $2700, in advance for the three months ended 31 March 2018, He adjusted his financial statements for the year ended 31 January 2018 for rent prepaid. Which effect did this have on the total expenses for the year? A decrease by $900 decrease by $1800 B © increase by $900 D increase by $1800 (] 10] ia)By %) lo) Which task would an accountant perform? A drawing up a trial balance B entering transactions in the ledger C preparing financial statements D _wiiting up the cash book ‘Amina returned goods to Nadia. Which document did Amina issue? A. credit note B debit note C invoice D statement of account a] 0] Arissa purchased a motor vehicle costing $23000 on 1 August 2016. She decided to depreciate the motor vehicle using the straight line (equal instalment) method at 20% per annum. Depreciation on the motor vehicle of $4600 was charged to the income statement for the year ended 31 July 2017. How much was charged to the income statement for the year ended 31 July 2018 for depreciation on the motor vehicle? A $3680 B $4600 Cc $8280 D $9200 (1)1) 1a) Prot @ seller. Which accounting principle is being applied? A B c D David and Bashir are in partnership. David made a loan to the partnership. consistency going concern prudence realisation What is the double entry to record this transaction? account debited account credited A bank David capital B bank David loan c David loan David capital D David loan David current Which statement about debentures is not correct? Debentures have a fixed rate of interest. Debenture interest must be paid regardless of profit made. Debentures are a non-current liability. Debentures carry voting rights. fit is only recorded in the financial statements when legal title passes between buyer and 1) 1 fl14) 15) 5) @ Marvin provided the following information. revenue for the year 7 Percentage of gross profit to ret OTK venue Percentage of profit to revenue ‘ om What were the expenses for the year? A B c D $1500 $2500 $6000 $8500 Matthias provided the following summary from his financial ‘statements. $ Non-current assets 67400 Current assets 48700 Non-current liabilities 29100 8000 Current liabilities What was the capital employed? A B ce D $11600 $40700 $79000 $108 100 In Alice's books an invoice received from Cait was credited to Kate’s account. Which type of error has been made? A B c D commission compensating original entry principle (1) f] i]© Amy and John are i i ‘i Profits and los secare ere Amy is entitled to an annual partnership salary of $9000. 1. The profit for the year ended $1 August 2018 was $14 700. 14) On 4 September 2017 Amy's current account had a debit balance of $2100. What was the credit balance on Amy's current account on 1 September 2018? A $10700 [] B $14900 C $16700 D $20900 (1 18) Asports club purchased sports equipment. Where will this be entered in the financial statements at the year end? receipts and payments income and statement of financial account ‘expenditure account position A v v v B v v c v v D v v ss a How is cost of production calculated? 19) A direct material + direct labour B direct material + direct labour + factory ‘overheads Cc direct material + direct labour + factory overheads + increase jin work in progress D direct material + direct labour + factory overheads increase in work in progress ft]40) Jim supplies Debbie with goods on credit, Which business document might Debbie send to Jim? A credit note B debit note C invoice D statement of account i) 21) What would be recorded in the general journal? Abad debt written off cash sale of goods B C credit sale of goods D returns outwards i 22) Which item is not included as part of the calculation of net realisable value when valuing inventory? ‘A. carriage inwards cost of completing the goods B © _ estimated receipts from sale of the goods D selling expenses [1] 23) How does a manufacturing business calculate the production cost of completed goods? A prime cost + factory overheads + opening work in progress — closing work in progress B prime cost + factory overheads — opening work in progress + closing work in progress C prime cost — factory overheads + opening work in progress - closing work in progress D__ prime cost — factory overheads — opening work in progress + closing work in progress 1)mm) 2s) 26): at) @ Anastasia purchased equipment, use the reducing (diminish $28 000, 9 (ciminishingy balance metho Ua 2016, ; method atthe rae of aon itn poy isto et annum, io) Which is an item of capital expenditure? A annual redecoration of offices L] buildings insurance B © _ legal fees on purchase of factory D repairs to machinery i Where will interest on drawings be recorded? A. credited to partners’ capital accounts B credited to partners’ current accounts debited to partners’ capital accounts D debited to partners’ current accounts tt) B Limited provided the following details at 30 Apri! 2018. s profit for the year ended 30 April 2018 72500 Ordinary share dividends paid +6000 transfer to general reserve 5000 retained earings at 30 April 2018 285000 What were retalned earings at the beginning of the financial year? ‘A $227500 B $232500 © $337500 | D $342500 ti)28) 2a) 2) al) @ For which accounts does the cash book act as a ledger account? bank cash discount | discount allowed | received A v v v Ue 5 v v v & v v D v v Which statement about the division of the ledger is not correct? ‘A Checking procedures can be introduced. B Fewer entries are needed in the sales and purchases accounts. C tis easier for reference and for locating accounts. D Work can be shared between two or more book-keepers. Which account may appear as a credit balance in a trial balance? A carriage outwards B discount received drawings D inventory Insurance prep: $120, was treated as an accrual in the income statement. ‘Which effect did this have on the profit for the year? A overstated $120 B overstated $240 C understated $120 D understated $240 (1) (11 1] a32) 33) Goods, $250, sold on credit to Ahmed were credited to Aktar’s. account. What is the correcting journal entry? debit credit $ s Ahmed 250 A | Aktar 250 Suspense 500 Ahmed 250 B | Suspense 250 Aktar 500 Aktar 500 C | Ahmed 250 ‘Suspense 250 Suspense 500 D | Ahmed 250 Aktar 250 Hassan sells two products, X and Y. He 2017. Product number of units | cost per unit net realisable value per unit $ $ x 520 2.00 2.20 Y 390 3.00 2.80 50 units of product Y were damaged and will have to be destroyed. What was the total value of Hassan’s inventory? A $1992 B $2132 Cc $2164 D $2314 a) Provided the following information on 31 December tyer) 35) © What does the going concern principle mean? A Non-current assets must be shown at expected sales value. B_ Revenue is recognised when ownershi Of good: anions Ip Of goods passes to the C The business will continue to operate for the foreseeable future. D The financial statements should always use the same accounting principles. On 31 March 2018 Sasha had trade receivables of $95000. She wrote off a bad det and made a provision for doubtful debts of 2% of trade receivables. a] bt, $750, What was the figure for net trade receivables in the statement of financial position at 31 March 2018? A $92350 B $92365 Cc $93115 D $94250 Bi (1)Multiple Choice Answers (Exam D) Question | Answer & BAH HOD) W/O WOO >|>|>lwlo]o|>|>lolwlylwlolwlwlalwlal>laly|>lo