The purpose of accounting — Paper 1 · IGCSE Accounting (9-1) 0985

1 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.

1 marks

Answer: A

This question in 0985/11 May/June 2020

1 Which are examples of book-keeping? 1 entering details of a cheque received from a customer in a cash book 2 entering details of goods purchased on credit in a purchases journal 3 producing an income statement to calculate the profit for the year 4 recording details of credit sales in the account of a credit customer A 1, 2 and 3 B 1, 2 and 4 C 1 and 2 only D 3 and 4

1 marks

Answer: B

This question in 0985/12 May/June 2020

1 A trader prepares financial statements each year. What do these assist the trader to do? A calculate the amount owing to credit suppliers B calculate the cash drawings C check the bank statement balance D make decisions about the future

1 marks

Answer: D

This question in 0985/12 Oct/Nov 2020

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

1 marks

Answer: C

This question in 0985/12 Oct/Nov 2020

1 Which statements about book-keeping and accounting are correct? 1 Accounting is performed periodically rather than daily. 2 Accounting relies on having accurate book-keeping records. 3 Book-keeping includes the preparation of financial statements. 4 Book-keeping involves the recording of financial transactions. A 1, 2 and 4 B 1 and 3 C 2, 3 and 4 D 2 and 4 only

1 marks

Answer: A

This question in 0985/11 May/June 2021

1 Which statements about book-keeping and accounting are correct? 1 Accounting is performed periodically rather than daily. 2 Accounting relies on having accurate book-keeping records. 3 Book-keeping includes the preparation of financial statements. 4 Book-keeping involves the recording of financial transactions. A 1, 2 and 4 B 1 and 3 C 2, 3 and 4 D 2 and 4 only

1 marks

Answer: A

This question in 0985/12 May/June 2021

1 Which statement is correct? A The accountant prepares the trial balance and the book-keeper prepares the financial statements. B The accountant writes up the journals and the book-keeper writes up the ledger accounts. C The book-keeper writes up the journals and the accountant prepares the trial balance. D The book-keeper writes up the ledger accounts and the accountant prepares the financial statements.

1 marks

Answer: D

This question in 0985/12 Oct/Nov 2021

19 John maintains a full set of accounting records. Why does he also prepare a statement of financial position? A to calculate the profit for the year B to check if assets equal capital plus liabilities C to show the transactions which took place during the year D to summarise what the business owns and what it owes

1 marks

Answer: D

This question in 0985/12 Oct/Nov 2021

33 Why would the owner of a business want to see his financial statements at the end of the year? 1 to assess the performance and progress of the business 2 to determine the market value of the non-current assets 3 to make informed decisions for the following years A 1 only B 1 and 3 C 2 only D 2 and 3

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2021

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

1 marks

Answer: D

This question in 0985/11 May/June 2022

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

1 marks

Answer: D

This question in 0985/12 May/June 2022

1 What is the main function of book-keeping? A communicating information B interpreting information C recording information D summarising information

1 marks

Answer: C

This question in 0985/12 May/June 2023

20 Which group contains only service businesses? A book shop, language school, newsagent B jewellery repairer, taxi firm, food store C language school, taxi firm, jewellery repairer D taxi firm, newsagent, food store

1 marks

Answer: C

This question in 0985/12 May/June 2023

21 What does the statement of financial position of a business show? A assets and liabilities at a certain date B calculation of the annual profit or loss C changes in equity during the financial year D income and expenditure for the financial year

1 marks

Answer: A

This question in 0985/12 May/June 2023

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.

1 marks

Answer: A

This question in 0985/11 May/June 2024

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

1 marks

Answer: C

This question in 0985/11 May/June 2024

1 A trader prepares financial statements each year. What do these help the trader to do? A calculate the amount owing to credit suppliers B calculate the cash drawings C check the bank statement balance D make decisions about the future

1 marks

Answer: D

This question in 0985/12 Oct/Nov 2024

1 Which task will not be performed by a book-keeper? A calculating accounting ratios B preparing a purchases journal C preparing a sales ledger D writing up a petty cash book

1 marks

Answer: A

This question in 0985/11 May/June 2025

1 Rikado left his job as a machine operator to start his own manufacturing business. Why was he interested in his financial statements at the end of the first year of business? A to ascertain the market value of the non-current assets B to check if all the transactions had been recorded C to find out about job satisfaction among the workers D to see if the profit was greater than his previous earnings

1 marks

Answer: D

This question in 0985/12 May/June 2025

20 Which statement is correct? A The income statement is part of the double entry system and shows a trader’s financial performance. B The income statement is part of the double entry system and shows a trader’s financial position. C The statement of financial position is part of the double entry system and shows assets and liabilities only. D The statement of financial position is part of the double entry system and shows owner’s capital only.

1 marks

Answer: A

This question in 0985/12 May/June 2025