Cambridge IGCSE Accounting 0452 — 2022 May/June Paper 1 · Variant 1

Question 1

1 Which task would be carried out by a book-keeper? A comparison of financial statements between years B preparation of financial statements C provision of information for decision-making D recording financial transactions

Accepted Answer

D

Question 2

2 What is the accounting equation? A assets = capital – liabilities B assets = liabilities – capital C assets – liabilities = capital D assets + capital = liabilities

Accepted Answer

C

Question 3

3 Sarah sold goods on credit to Zafar. How was this recorded in Sarah’s ledgers? general ledger sales ledger A credit sales account debit Zafar account B debit sales account credit Zafar account C credit Zafar account debit sales account D debit Zafar account credit sales account

Accepted Answer

A

Question 4

4 Omar sent a credit note to Miriam for goods returned. How would Miriam record this transaction? account to be debited account to be credited A purchases returns Omar B sales returns Miriam C Omar purchases returns D Miriam sales returns

Accepted Answer

C

Question 5

5 The discount column on the debit side of a trader’s cash book totalled $1300 and the discount column on the credit side totalled $700. How much discount did the trader receive? A $600 B $700 C $1300 D $2000

Accepted Answer

B

Question 6

6 Kai bought office equipment from Meena and paid immediately by bank transfer. How should Kai record this in his accounting records? account to be debited account to be credited A bank Meena B bank office equipment C Meena bank D office equipment bank

Accepted Answer

D

Question 7

7 Jabari maintains a petty cash book using the imprest system. The imprest is restored at the end of each month. Which amount restores the imprest at the end of a month? A the amount left in petty cash less the total of vouchers received B the amount left in petty cash plus the total of vouchers received C the imprest amount less the total of vouchers received D the total of vouchers received

Accepted Answer

D

Question 8

8 Which statement about a trial balance is correct? A It assists in locating arithmetical errors in the book-keeping records. B It is proof that the entries in the ledger accounts are free from error. C It reveals all book-keeping errors. D It shows ledger account errors only.

Accepted Answer

A

Question 9

9 What is an example of a compensating error? A A payment for office equipment repairs was debited to the office equipment account. B A purchase of goods from C Jones was credited to the account of C Johns. C The sale of goods, $65, to A Aziz was entered in the books as $56. D The wages account was undercast by $100 and the rent account was overcast by $100.

Accepted Answer

D

Question 10

10 After the preparation of Abdul’s draft financial statements, two errors were discovered. The purchase of a machine by bank transfer, $5000, was omitted from the accounts. The purchase of a motor vehicle, $15 000, was entered in the motor vehicle repair account. What effect will correcting these errors have on the non-current assets and the working capital? non-current assets working capital $ $ A increase 15 000 decrease 5000 B increase 15 000 no effect C increase 20 000 decrease 5000 D increase 20 000 no effect

Accepted Answer

C

Question 11

11 Raj had a debit balance of $10 800 in the bank column of his cash book. He discovered that purchases, $890, paid by cheque, had been recorded as $980. The following appeared in the bank statement but had not been entered in the cash book. $ bank charges 76 interest received 120 What was the debit balance in the bank column of Raj’s cash book after adjusting for these items? A $10 514 B $10 666 C $10 754 D $10 934

Accepted Answer

D

Question 12

12 Why is a sales ledger control account usually prepared by a different member of staff than the person who maintains the sales ledger? A to deter fraud B to locate errors C to provide an instant total of trade receivables D to speed production of financial statements

Accepted Answer

A

Question 13

13 Tamal provided the following information for March, his first month of trading. $ credit purchases 9100 credit purchases returned 322 total payments to credit suppliers 5358 During the month, Tamal overpaid a supplier by $94. He did not make any further purchases from this supplier in March. What were the balances on Tamal’s purchases ledger control account on 1 April? debit balance credit balance $ $ A 0 3420 B 0 3514 C 94 3420 D 94 3514

Accepted Answer

D

Question 14

14 The following payments were made by John when he purchased a machine. $ purchase of machine 10 000 delivery charge 1 200 insurance 800 installation charge 900 pre-paid maintenance charge 400 How much should have been debited to the machinery account? A $10 900 B $11 200 C $12 100 D $12 500

Accepted Answer

C

Question 15

15 On 1 January, Zac entered the cost of repairing equipment, $420, in the equipment account. On 31 December, depreciation of 20% per annum, using the straight-line method, was charged on the balance of the equipment account. What was the overall effect on the book value of the equipment on 31 December? A $84 understated B $336 overstated C $420 overstated D $504 understated

Accepted Answer

B

Question 16

16 Atif depreciates his motor vehicles at a rate of 20% per annum using the reducing balance method. On 1 May 2021, Atif owned motor vehicles which cost $35 000. At that date, the motor vehicles had been depreciated by $12 600. What was the balance on Atif’s provision for depreciation account on 1 May 2022? A $17 080 B $17 920 C $19 600 D $22 400

Accepted Answer

A

Question 17

17 The financial year of Yeung ends on 31 March. On 1 April 2021, he purchased a machine for $4000. He estimated that it would have a useful working life of 3 years and a residual value of $100. Yeung uses the straight-line method of depreciation. The machine was sold on 1 April 2022 for $1500. What was the loss on disposal? A $1100 B $1200 C $2400 D $2500

Accepted Answer

B

Question 18

18 On 1 April 2021, commission receivable, $210, was outstanding. Commission received during the year ended 31 March 2022 amounted to $4850. Which journal entry should have been made at the end of the financial year on 31 March 2022? debit credit $ $ A commission receivable 4640 income statement 4640 B commission receivable 5060 income statement 5060 C income statement 4640 commission receivable 4640 D income statement 5060 commission receivable 5060

Accepted Answer

A

Question 19

19 Which statement about a debts recovered account is correct? A The account is used when an amount, previously written off, is received from a customer. B The account is used when doubtful debts are recovered. C The balance of the account is debited to the income statement at the end of the year. D The balance of the account is shown in the statement of financial position.

Accepted Answer

A

Question 20

20 Nula’s financial year ends on 31 December. She maintains a provision for doubtful debts of 5% of trade receivables. On 1 January 2021, the provision amounted to $800. On 31 December 2021, trade receivables owed $13 400, of which $600 was regarded as irrecoverable. How much was the provision for doubtful debts on 1 January 2022? A $600 B $640 C $660 D $670

Accepted Answer

B

Question 21

21 When preparing his financial statements, a trader valued his inventory at cost. He then found that 10 units of inventory, costing $12 per unit, were damaged. If he spent $2 per unit on repairs, he could sell them for $9 each. What was the effect on the income statement of the incorrect inventory valuation? gross profit profit for the year A overstated $30 no effect B overstated $50 overstated $50 C understated $30 no effect D understated $50 understated $50

Accepted Answer

B

Question 22

22 At the end of his financial year, Marek was owed $200 for interest on a loan he had made to an employee. He recorded this in his financial statements. How did the interest on this loan affect Marek’s profit for the year and where was it recorded in his statement of financial position? statement of profit for the year financial position A decreased current assets B decreased current liabilities C increased current assets D increased current liabilities

Accepted Answer

C

Question 23

23 What is the purpose of preparing a partnership appropriation account? A to calculate the interest to be charged on the drawings made by each partner B to calculate the interest to be paid on the capital invested by each partner C to show the amount of salary to which each partner is entitled D to show the division of the profit or loss for the year between the partners

Accepted Answer

D

Question 24

24 Raj and Seema are in partnership sharing profits and losses 2 : 1. Raj withdrew $5000 during the year and was charged interest at 3%. Seema did not make any withdrawals during the year. The profit for the year was $30 000. How much was credited to Raj’s current account at the end of the year? A $19 850 B $19 900 C $20 000 D $20 100

Accepted Answer

D

Question 25

25 A limited company raised funds from an issue of debentures. Which statement is correct? A The debentures are part of the equity of the company. B The debenture holders cannot vote at the annual general meeting. C The debenture holders are repaid only if the company is wound up. D The debenture interest is paid only if the company earns a profit.

Accepted Answer

B

Question 26

26 A limited company provided the following information. $ total equity on 1 January 2021 500 000 ordinary share dividend paid 30 June 2021 25 000 transfer to general reserve on 31 December 2021 12 000 total equity on 31 December 2021 558 000 What was the profit for the year? A $46 000 B $58 000 C $83 000 D $95 000

Accepted Answer

C

Question 27

27 Which group contains only items included in the prime cost of a manufacturer? A direct expenses, depreciation of factory machinery, royalties B direct wages, factory supervisor’s wages, factory insurance C factory overheads, raw materials, direct expenses D raw materials, royalties, direct labour

Accepted Answer

D

Question 28

28 The work in progress of ZT Manufacturers on 1 January was valued at $6200. At the end of the year it was valued at $5400. What was the effect on the cost of production for the year? A decrease $800 B decrease $11 600 C increase $800 D increase $11 600

Accepted Answer

C

Question 29

29 A trader does not keep full accounting records but was able to provide the following information. $ capital at 1 January 2021 26 000 capital at 31 December 2021 37 000 drawings made during year 6 500 During the year, $9500 was withdrawn from the owner’s private bank account to purchase a motor vehicle to be used by the business. What was the profit for the year? A $8000 B $11 000 C $14 000 D $17 500

Accepted Answer

A

Question 30

30 A business provided the following information. opening inventory $6800 closing inventory $6000 rate of inventory turnover 5 times What were the purchases for the year? A $29 200 B $31 200 C $32 000 D $32 800

Accepted Answer

B

Question 31

31 Jerry started his business on 1 January 2022 with no opening inventory. On 19 April 2022, a fire destroyed all his inventory. Jerry provided the following information for the period 1 January 2022 to 19 April 2022. revenue $30 200 purchases $25 600 gross margin 25% What was the value of inventory destroyed on 19 April 2022? A $1800 B $2950 C $3450 D $5750

Accepted Answer

B

Question 32

32 A trader provided the following information. $ profit for the year 24 000 working capital 20 000 capital 120 000 non-current liability 30 000 What was the return on capital employed? A 14.12% B 16.00% C 17.14% D 20.00%

Accepted Answer

B

Question 33

33 Which actions could a clothing retailer take to improve his rate of inventory turnover? 1 increase the selling prices of all clothing 2 offer discounts on last year’s designs 3 pay clothing suppliers as quickly as possible A 1 and 3 only B 1, 2 and 3 C 2 only D 3 only

Accepted Answer

C

Question 34

34 A trader is considering selling goods on credit to a new customer. What could be calculated from the customer’s financial statements to indicate the time normally taken to pay for goods purchased on credit? A current ratio B liquid (acid test) ratio C trade payables turnover D trade receivables turnover

Accepted Answer

C

Question 35

35 Which accounting policy requires that the information in financial statements is free from significant errors and bias? A comparability B consistency C reliability D understandability

Accepted Answer

C

Question paper12 pages

Mark scheme3 pages

Questions as text

Q1 · Which task would be carried out by a book-keeper?

Q2 · What is the accounting equation?

Q3 · Sarah sold goods on credit to Zafar

Q4 · Omar sent a credit note to Miriam for goods returned

Q5 · The discount column on the debit side of a trader’s cash book totalled $1300 and the…

Q6 · Kai bought office equipment from Meena and paid immediately by bank transfer

Q7 · Jabari maintains a petty cash book using the imprest system

Q8 · Which statement about a trial balance is correct?

Q9 · What is an example of a compensating error?

Q10 · After the preparation of Abdul’s draft financial statements, two errors were discovered

Q11 · Raj had a debit balance of $10 800 in the bank column of his cash book

Q12 · Why is a sales ledger control account usually prepared by a different member of staff…

Q13 · Tamal provided the following information for March, his first month of trading

Q14 · The following payments were made by John when he purchased a machine

Q15 · On 1 January, Zac entered the cost of repairing equipment, $420, in the equipment account

Q16 · Atif depreciates his motor vehicles at a rate of 20% per annum using the reducing balance…

Q17 · The financial year of Yeung ends on 31 March

Q18 · On 1 April 2021, commission receivable, $210, was outstanding

Q19 · Which statement about a debts recovered account is correct?

Q20 · Nula’s financial year ends on 31 December

Q21 · When preparing his financial statements, a trader valued his inventory at cost

Q22 · At the end of his financial year, Marek was owed $200 for interest on a loan he had made…

Q23 · What is the purpose of preparing a partnership appropriation account?

Q24 · Raj and Seema are in partnership sharing profits and losses 2 : 1

Q25 · A limited company raised funds from an issue of debentures

Q26 · A limited company provided the following information

Q27 · Which group contains only items included in the prime cost of a manufacturer?

Q28 · The work in progress of ZT Manufacturers on 1 January was valued at $6200

Q29 · A trader does not keep full accounting records but was able to provide the following…

Q30 · A business provided the following information

Q31 · Jerry started his business on 1 January 2022 with no opening inventory

Q32 · A trader provided the following information

Q33 · Which actions could a clothing retailer take to improve his rate of inventory turnover?

Q34 · A trader is considering selling goods on credit to a new customer

Q35 · Which accounting policy requires that the information in financial statements is free…

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