Cambridge IGCSE Accounting 0452 — 2024 May/June Paper 1 · Variant 1

Question 1

1 Which task is performed by a book-keeper? A analysing accounting ratios B interpreting the income statement C posting entries from the journals to the ledgers D preparing a statement of financial position

Accepted Answer

C

Question 2

2 Which statement is correct? A Accounting involves measuring profits and losses. B Accounting is the recording of financial transactions. C Book-keeping involves communicating financial data. D Book-keeping requires the use of ratio analysis.

Accepted Answer

A

Question 3

3 In which book of prime entry does a trader record cash discount received? A cash book B general journal C purchases journal D sales journal

Accepted Answer

A

Question 4

4 The analysis columns of a petty cash book show the following totals. $ postage 20 stationery 31 How should these totals be posted to the ledger? A credit bank account with $51 B credit postage account with $20 and stationery account with $31 C debit cash account with $51 D debit postage account with $20 and stationery account with $31

Accepted Answer

D

Question 5

5 Which business documents are not entered in the books of prime entry? 1. credit note 2. debit note 3. invoice 4. statement of account A 1 and 3 B 1 only C 2, 3 and 4 D 2 and 4 only

Accepted Answer

D

Question 6

6 A trader has the following ledger account. heat and light account $ $ year 1 year 1 January 1 balance b/d 400 December 31 income statement 4850 December 31 bank 4200 December 31 balance c/d 250 ____ 4850 4850 year 2 January 1 balance b/d 250 What does the balance on 1 January, year 2 represent? A heat and light outstanding B heat and light refunded C overpayment of heat and light D prepayment of heat and light

Accepted Answer

A

Question 7

7 Which statement about a trial balance is correct? A It is a list of the ledger balances on a particular date. B It is part of the double entry system of book-keeping. C It is proof that all items have been posted to the correct accounts. D It is proof that all transactions have been entered in the books of account.

Accepted Answer

A

Question 8

8 Trevor prepared his financial statements for the year ended 31 December 2020. He then discovered that he had omitted to record a cash payment, $240, for insurance for the 12 months ending 30 November 2021. What was the effect of this error on his statement of financial position? cash other receivables capital A $240 overstated $20 understated $220 overstated B $240 overstated $220 understated $20 overstated C $240 understated $20 overstated $220 understated D $240 understated $220 overstated $20 understated

Accepted Answer

B

Question 9

9 A payment of $68 for insurance has been entered in the insurance account as $86. Which double entry will correct this? debit credit A insurance $18 suspense $18 B insurance $36 suspense $36 C suspense $18 insurance $18 D suspense $36 insurance $36

Accepted Answer

C

Question 10

10 A business has received a bank statement. The bank statement shows the following entries. 1. a cheque issued to a credit supplier 2. a cheque received from a credit customer 3. a monthly rent payment made by standing order 4. charges made by the bank Which items appear in the debit column of the bank statement? A 1, 3 and 4 B 1 and 3 only C 1 only D 2

Accepted Answer

A

Question 11

11 On 31 May the bank statement of a business showed a positive bank balance of $1790. Comparing the bank statement with the cash book the following items were discovered. The bank had charged $35 in error. Unpresented cheques totalled $550. Uncredited deposits totalled $250. What was the cash book balance? A $1455 B $1490 C $1525 D $2125

Accepted Answer

C

Question 12

12 What would not be included in a sales ledger control account? A cash sales recorded in the cash book B cheques received from credit customers recorded in the cash book C goods sold on credit recorded in the sales journal D irrecoverable debts written off recorded in the journal

Accepted Answer

A

Question 13

13 Nadia provided the following information for the month of July. $ 1 July sales ledger control account balance debit 1750 credit 215 For the month of July: total of sales journal 5500 total of sales returns journal 360 cheques received from credit customers 4840 irrecoverable debt written off 280 interest charged on credit account 5 There was no credit balance on the account on 1 August. What was the debit balance brought down on the sales ledger control account on 1 August? A $1550 B $1560 C $1980 D $1990

Accepted Answer

B

Question 14

14 Samir runs a car hire business. He received cash payments for car hire. He also received the proceeds from the sale of an old vehicle. Which type of receipts were they? proceeds from car hire sale of an old vehicle A capital capital B capital revenue C revenue capital D revenue revenue

Accepted Answer

C

Question 15

15 The following ledger account appeared in the books of a trader. Rent receivable account $ $ 2020 2020 Dec 31 balance c/d 600 Jan 1 balance b/d 400 Dec 31 bank 3600 Which entry was made in the income statement for the year ended 31 December 2020 for rent receivable? A $3400 credit B $3400 debit C $3800 credit D $3800 debit

Accepted Answer

A

Question 16

16 Mandeep depreciates his motor vehicles at the rate of 20% using the straight-line method. A full year’s depreciation is provided in the year of purchase. Mandeep bought a motor vehicle on 1 January 2017 for $20000. On 1 June 2020 he bought a second motor vehicle for $10000. What was the depreciation charge on motor vehicles for the year ended 31 December 2020? A $2000 B $4000 C $5000 D $6000

Accepted Answer

D

Question 17

17 Why does a trader maintain a provision for doubtful debts? 1. to ensure amounts owing to the business for which payment is unlikely to be received are regarded as an expense 2. to ensure the trade receivables of the business are not overstated, by providing for debts which are unlikely to be paid 3. to identify credit customers who are not able to settle their accounts by the end of the financial year 4. to provide for the amounts from credit customers which are unpaid at the end of the financial year A 1 and 2 B 1, 3 and 4 C 2 and 3 only D 2, 3 and 4

Accepted Answer

A

Question 18

18 Why is inventory valued at the lower of cost and net realisable value? A to avoid overstating current assets and sales B to avoid overstating profit and current assets C to avoid understating current assets and sales D to avoid understating profit and current assets

Accepted Answer

B

Question 19

19 At the end of the financial year Cindy valued her inventory at cost. This valuation incorrectly included damaged goods costing $300. Cindy estimated these goods could be sold for $100. What is the effect of correcting the inventory valuation? gross profit profit for the year current assets A decreases by $200 decreases by $200 decreases by $200 B decreases by $300 decreases by $300 decreases by $300 C increases by $100 increases by $100 increases by $100 D increases by $200 increases by $200 increases by $200

Accepted Answer

A

Question 20

20 Which business is not a service business? A accountant’s practice B computer repair shop C flower shop D hairdressing salon

Accepted Answer

C

Question 21

21 A trader was preparing her statement of financial position at 30 June 2021. She had four bank loans. loan date repayable $ 1 1 December 2021 5000 2 1 December 2022 10000 3 1 September 2023 8000 4 1 December 2025 6000 What was the total amount of loans that should be recorded as non-current liabilities at 30 June 2021? A $14000 B $15000 C $23000 D $24000

Accepted Answer

D

Question 22

22 What is shown in a partnership appropriation account? A the capital contributed by each partner B the distribution of profit/loss among the partners C the partners’ current account balances D the interest on a partner’s loan account

Accepted Answer

B

Question 23

23 Rajid and Sunil formed a partnership on 1 January 2019 but did not prepare a partnership agreement. They provided the following information. Rajid Sunil capital introduced 1 January 2019 $40000 $20000 during the year ended 31 December 2019 drawings $5000 $3500 share of work 50% 50% They decided to draw up a partnership agreement for future years. Which item would be most beneficial to Rajid in 2020? A interest on capital B interest on drawings C limit on annual drawings D partnership salaries

Accepted Answer

A

Question 24

24 A company supplied the following information. $ issued and paid up share capital 300000 general reserve 45000 long-term bank loan 8000 retained earnings 35000 6% debentures 25000 What is the total equity? A $335000 B $345000 C $380000 D $413000

Accepted Answer

C

Question 25

25 Which apply to both debentures and preference shares? included in no voting fixed rate of capital rights return employed A ✓ ✓ ✓ B ✓ ✗ ✓ C ✗ ✓ ✗ D ✗ ✗ ✗

Accepted Answer

A

Question 26

26 The AB Sports Club runs a café for the use of members. The treasurer prepared draft financial statements which showed a deficit of $700 and an accumulated fund of $4600. He then discovered that the closing inventory of the café had been overvalued by $50. How much were the deficit and the accumulated fund after the inventory valuation had been corrected? accumulated deficit fund $ $ A 650 4550 B 650 4650 C 750 4550 D 750 4650

Accepted Answer

C

Question 27

27 Which accounting statement prepared by the treasurer of a sports club provides a summary of all the monies received and paid out during the financial year? A bank reconciliation statement B income and expenditure account C receipts and payments account D statement of financial position

Accepted Answer

C

Question 28

28 At the end of the financial year, a manufacturing business owed rent on its factory. The business adjusted its financial statements to account for this. What effects did this adjustment have? prime cost cost of production gross profit A decrease decrease increase B no effect increase decrease C no effect no effect decrease D increase increase decrease

Accepted Answer

B

Question 29

29 What is a direct cost for a manufacturer? A carriage outwards B depreciation of delivery vehicle C factory supervisor’s salary D production royalties

Accepted Answer

D

Question 30

30 A business uses 20% mark up to arrive at its selling prices. During the year it made purchases of $35000 and the inventory decreased from $7000 to $2000. What was the revenue for the year? A $36000 B $40000 C $42000 D $48000

Accepted Answer

D

Question 31

31 What is needed for the preparation of a statement of affairs? A a trial balance B an income statement C books of prime entry D values of assets and liabilities

Accepted Answer

D

Question 32

32 A trader provided the following information. $ cash purchases for the year 146000 credit purchases for the year 108000 trade payables at the year end 14000 What was the trader’s trade payables turnover? A 6 days B 13 days C 21 days D 48 days

Accepted Answer

D

Question 33

33 George provided the following information. $ non-current assets 15000 inventory 12000 trade receivables 18000 trade payables 8000 His liquid (acid test) ratio was 1.2:1. What was his bank overdraft? A $7000 B $15000 C $17000 D $29500

Accepted Answer

A

Question 34

34 The following ratios have been calculated for a trader. year 1 year 2 profit margin 15% 20% return on capital employed (ROCE) 9% 6% What explains these changes? A Drawings have increased by more than profit for the year. B Gross profit has increased but profit for the year has decreased. C Profit for the year has increased and capital has been introduced. D Profit for the year has increased and a long-term loan has been repaid.

Accepted Answer

C

Question 35

35 William is a trader. He has received an order from James to supply goods on credit. When should William regard the revenue as earned? A when William accepts the order from James B when William delivers the goods to James C when William receives full payment for the goods from James D when William receives the first payment on account from James

Accepted Answer

B

Question paper12 pages

Mark scheme3 pages

Questions as text

Q1 · Which task is performed by a book-keeper?

Q2 · Which statement is correct?

Q3 · In which book of prime entry does a trader record cash discount received?

Q4 · The analysis columns of a petty cash book show the following totals

Q5 · Which business documents are not entered in the books of prime entry?

Q6 · A trader has the following ledger account

Q7 · Which statement about a trial balance is correct?

Q8 · Trevor prepared his financial statements for the year ended 31 December 2020

Q9 · A payment of $68 for insurance has been entered in the insurance account as $86

Q10 · A business has received a bank statement

Q11 · On 31 May the bank statement of a business showed a positive bank balance of $1790

Q12 · What would not be included in a sales ledger control account?

Q13 · Nadia provided the following information for the month of July

Q14 · Samir runs a car hire business

Q15 · The following ledger account appeared in the books of a trader

Q16 · Mandeep depreciates his motor vehicles at the rate of 20% using the straight-line method

Q17 · Why does a trader maintain a provision for doubtful debts?

Q18 · Why is inventory valued at the lower of cost and net realisable value?

Q19 · At the end of the financial year Cindy valued her inventory at cost

Q20 · Which business is not a service business?

Q21 · A trader was preparing her statement of financial position at 30 June 2021

Q22 · What is shown in a partnership appropriation account?

Q23 · Rajid and Sunil formed a partnership on 1 January 2019 but did not prepare a partnership…

Q24 · A company supplied the following information

Q25 · Which apply to both debentures and preference shares?

Q26 · The AB Sports Club runs a café for the use of members

Q27 · Which accounting statement prepared by the treasurer of a sports club provides a summary…

Q28 · At the end of the financial year, a manufacturing business owed rent on its factory

Q29 · What is a direct cost for a manufacturer?

Q30 · A business uses 20% mark up to arrive at its selling prices

Q31 · What is needed for the preparation of a statement of affairs?

Q32 · A trader provided the following information

Q33 · George provided the following information

Q34 · The following ratios have been calculated for a trader

Q35 · William is a trader

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