3. 4. Ss -2- Whichofthe following financialstatements 5. shows the value of a business’ assets? Balance sheet (B) Trading account (C) Cash flow statement (D) Profit and loss account The MAIN intemal users of accounting information are managers (B) competitors (©) local communities () government agencies Which of the following features are benefits of using accounting software? tage stale ot alco I, Almost immediate updating of records I. Programmable to recognize irregular entries (A) Land tonly (B) Land Ifonly (© Mand fil only 1, Wand Il Which of the following lists of activities shows the correct order of the stages in the accounting cycle, before final accounts? 7, (A) Postingto ledger, journalizing, trial balance (B) Posting to ledger, trial balance, journalizing LPP Sournalizing, postingto ledger, trial balance (D) —_Journalizing, trial balance, posting to ledger ‘The following information refers to the assets and liabilities of Mr Jones. Cash at bank Inventory Payables Receivables Bank overdraft Cash in hand From the information above, Mr Jones’ capital amount is, (A) sos @) $450 (©) $850 3975 > Partnerships are formed for the purpose of 1. combining capital from different persons UL. benefiting from different skills and specializations MM. sharing experience and responsibilities (A) and Il only @) Land Uf only y Wand If only 1, Mand UT Which of the following is usually used to complete a general journal entry? @) Narration (B) Description of assets (C)__ Description of liabilities (D) Name of book to which entry must be postedItem 8 refers to the following balances at Item 12 refers to the following balances the end of a financial period. taken from the books of Sherida’s Ltd on 30 April 2019. $ Motor vehicles 2000 BALANCES Payables 3000 Rent owing $ 200 Receivables 2000 Cash $3 500 Capital 11000 Payable: $1 200 ‘Building 10 000 Prepaid insurance | $ 300 Bank overdraft $ 400 What is the TOTAL amount for the assets? 12. What is the current ratio of Sherida’s Ltd? (A) $12 000 a Sit000 ® (D) = $15.000 a 21:1 @) 34:1 Ram Singh purchased goods valued at $500 oncredit. Hepaidoffhisbill withinthegrace 43, Which of the following entries should be period and so received a 10% cash discount. used to post sales retums? How much did he pay for the goods? (HF Debit sales returns account () $50 - Credit the receivable account —e $450 (B) _ Debit sales returns account (© $490 Credit sales account @) $550 (©) __ Debit sales account Credit sales returns account 7 nat (D) _ Debit the receivable account Which of the following items are examples iGecait'sties retusa’ aconunt of current liabilities? 1. Mortgages 14. Which of the following persons monitor a I. — Accounts payable company’s financial statements, to discover HL Accrued wages a desirable rate of return on capital? (A) Tand If only eer investors (B) Land I only (B) Suppliers Wand I only (©) Customers (D) 1, Wand UI (D) Employees Which of the following entries in a three- column cash book are contra entries? “WH Debit cash, Credit bank (B) Debit cash, Credit cash (©) Credit cash, Credit bank (D) Debit bank, Credit bank GO ON TO THE NEXT PAGE15; 16. Item 15 refers to the following information from the books of a company. Cash sales 10 000) Credit sales 45 000 Inventory on hand 40 000) Drawings 8.000 ‘Cash purchases 12.000 Credit purchases 20200 From the information above, what is the correct closing total for the sales account? (A) $47 000 (B) $49.00 <> $55.000 @) — $59.000 Which of the following entries would NOT appear in a cash book? (A) Payment for goods $100 Goods sold on credit $100 (©) Goods sold for cheque $100 (D) Goods bought forcash $100 17. 18. K. Khan, a debtor of A and B Enterprises, settles his debt of $120 less discount, by cheque. How should the double entry be recorded in the books of A and B Enterprises? (A) | Debit K. Khan $il7 Debit discount received | $ 3 Credit bank $120 (B) | Debit K. Khan Sul7 Debit discount allowed | $ 3 Credit bank $120 1 Debit bank SUT Debit discount allowed | $ 3 Credit K. Khan $120 (D) | Debit bank $u7 Credit discount received | $ 3 Credit K. Khan $120 Mr. Jones paid $250 in cash for repairs to machinery. This transaction was entered in the cash book and posted to the ledger. The double entry involved would be (A) Debit cash account Credit repairs account (B) Debit cash account Credit machinery account =) Debit repairs account Credit cash account (D) Debit A. Jones account Credit cash account19, 20. Inorder toavoid writing numerous cheques for small amounts, a firm may set up a (A) bank draft PB petty cash fund (C) general journal (D) _ bank standing order tem 20 refers to the following information from the sales book of R. Lewis. 2019 $s 2Jan_ | H. Rick 30@$1.50 | 45 1 Less 335% Trade discount | 15 30 How would R. Lewis record this information in his ledger? (A) Debit H. Rick’s account $45 Credit sales account $45 (B) Debit H. Rick’s account $30 Credit sales day book $30 (C) Debit. Rick’s account $45 Credit sales account $30 OP” Debit H. Rick's account $30 Credit sales account $30 01239010//CSEC 2020 22. A businessman bought a new computer for $6 000. He paid $4 000 in cash and traded in his old computer. What is the entry to record this transaction? Debit | Creait (A) [Debit old computer | $2 000 Debit cash $4000 Creditnew computer $6 000 (B) | Debit new computer | $4 000 Debit cash 2.000 Credit old computer $6 000 (©) | Debit old computer ‘$6000 Debit cash $4000 Creditnew computer | $2000 Debit new computer | $6 000 Credit old computer $2,000 Credit cash $4.00 When a proprietor withdraws cash or other assets from a business, what effect does it have on drawings or capital? Y Capital is increased. Capital is decreased, (C) Drawings are decreased. (D) Neither drawings nor capital is affected. GO ON TO THE NEXT PAGEInems 23-28 refer to the following Statement of Financial Position (Balance Sheet), s s s s Leasehold premises 10 000 Capital at start i oo Fumiture, fittings and equipment 4500 Less loss for year 2200 14 500 21 800 Less drawings _1 800 Inventory 2500 20 000 Receivables 3700 Bank current ale 2100 Creditors 2100 Cash in hand 300 ‘Accrued expenses __1 200 800 3.300 23300 23 300 23, What is the total value of the fixed assets? (A) $11 200 purchasing a new building GO ON TO THE NEXT PAGE 0123901 0/J/CSEC 2020 pecs) EEEItem $4 refers to the following information. J. Baynes Manufacturing Account for the Period Ended 31 December 2017 5 $ Inventory of raw materials | January 2017 800 Purchases of raw materials during year 4500_ Balance carried forward 6 800 300 Less closing inventory of raw materials 31 December 2017 1.400 3900 Productive wages 1300 Fuel and power 900 Lubricants 100 Rent and rates 400 Insurance 200 ob 6 800 6 800_ 54, Whatis the cost of the raw materials consumed? (A) $ 800 (B) $1200 $3900 (D) $4500 Item 56 refers to the following table which shows balances of the asset accounts of the Bayroe Club as at 30 June 2019. —_— Assets [os Premises 3.400 Equipment | 1825 | Fumiture 960 Bank and cash | 1640 | Jnventory and refreshments | ___72 55, The amount of the club’s accumulated fund was (A) $1 640 (B) $4497 (C) $8185 Tee 59897 GO ON TO THE NEXT PAGE56. 58. -13- Salaries paid to the administrative staff in a factory would be classified as which of the following types of cost? (A) Manufacturing o> indirect (©) Direct (D) Prime When a company declares a dividend of Item _59 refers to the following list of balan: Ss Work in progress | January | 1 600 Work in progress 31 December} 1 700 Cost of materials used 3.000 Indirect expenses 3200 Factory wages 5.000 i ices above, what 15% the dividend warrant of asharehiolder. 5" Hog Satan) Seat owning 1500 one-dollar ordinary shares is ane (a) $ 8000 eels (BL $ 8700 — $11 100 (©) $1500 tye itzon @) s15i5 i e tructi Prime cost is $79 110, office expenses bitin nigtne cesta uae eae $5,000 snd taetony avertieads 94,720; oy a week, he worked his basic week of mine fs te cose OF projection? 40 hours. The income tax due on his pay is $20, and he is also liable to pay national (tsa surance contributions of 5% of his gross ot pay. What is his net pay? (D) $86 830 eee atae (B) $260 (©) $266 (D) $280 END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.