➡️QUESTION⬅️
Dennis runs a business with two departments, one selling carpets and one selling furniture.
Total sales were $210000 of which 60% related to the carpet department.
The total gross profit was $54600 of which 60% related to the furniture department.
What was the cost of sales of the carpet department?
A $51240
B $62160
C $93240
D $104160
ANSWER D
➡️QUESTION⬅️
A business has no non-current liabilities.
What is added to the non-current assets in order to calculate the capital employed?
A current assets
B current liabilities
C owner's capital
D working capital
ANSWER D
➡️QUESTION⬅️
Which items are used to calculate cost of goods sold?
A carriage on purchases, carriage on sales, net purchases, opening inventory
B carriage on purchases, closing inventory, net purchases, opening inventory
C carriage on sales, closing inventory, net purchases, opening inventory
D carriage on sales, closing inventory, net purchases, sales returns
ANSWER B
➡️QUESTION⬅️
A golf club sells refreshments to its members. Suppliers of refreshments were owed $250 on January 2018 and $400 on 31 December 2018. Payments to suppliers during the year were $7200.
The inventory at the end of the year was $100 less than the inventory at the Start of the year.
What was the cost of sales of refreshments for the year ended 31 December 2018?
A $7050
B $7150
C $7300
D $7450
ANSWER D
➡️QUESTION⬅️
Which ts an intangible asset?
A buildings
B goodwill
C inventory
D trade receivables
ANSWER B
➡️QUESTION⬅️
Which item is credited in a partnership appropriation account?
A interest on capital
B interest on drawings
C partners’ drawings
D partners’ salaries
ANSWER B
➡️QUESTION⬅️
What is an advantage of trading as a partnership?
A Apartnership is a separate legal entity.
B Decision-making is easy and quick.
C Liability is unlimited.
D Responsibilities are shared.
ANSWER D
➡️QUESTION⬅️
What is the disadvantage to a sole trader of bringing in a partner?
A The business will benefit from the knowledge of the new partner.
B The new partner may bring additional capital into the business.
CThe profits made by the business will have to be shared with the new partner.
D The responsibility for running the business may be shared with the new partner.
ANSWER C
➡️QUESTION⬅️
Which item would be entered in a statement of changes in equity?
A debenture interest accrued
B debenture interest paid
C ordinary dividend paid for current year
D ordinary dividend proposed for current year
ANSWER C
➡️QUESTION⬅️
On 1 January NH Limited was formed with the issue of 200000 ordinary shares of $0.50 each.
During the first year it made a profit of $21000. A dividend of $0.02 per share was paid and $10 000 was transferred to general reserve.
A $7000
B $9000
C $17000
D $19000
What was the total of reserves on 31 December?
ANSWER C
➡️QUESTION⬅️
The issued share capital of CD Limited consists of ordinary shares.
Retained earnings were $86 000 on 1 September 2016 and $88 500 on 31 August 2017.
The company made a profit during the year of $26 000 and made a transfer to general reserve of $5000.
What was the total ordinary share dividend paid during the year?
A $18500 B $23500 C $28500 D $33500
ANSWER A
➡️QUESTION⬅️
Which statements about ordinary shares are correct?
1 If a company is wound up ordinary shares are repaid after debentures.
2 Ordinary shares are a non-current liability of the company.
3 The holders of ordinary shares are the owners of the company.
A 1and3
B 1only
C 2and3
D 3only
ANSWER A
➡️QUESTION⬅️
Which items are included in the equity section of the statement of financial position of a limited company?
A ordinary shares, retained earnings, debentures and current liabilities
B ordinary shares, retained earnings and debentures only
C ordinary shares and retained earnings only
D ordinary shares only
ANSWER C
➡️QUESTION⬅️
A club had an accumulated fund at the start of the year of $18000 and at the end of the year of $16 200.
Total running costs for the year were $9550. New equipment costing $1100 was bought during the year. The only income came from subscriptions.
How much were subscriptions for the year?
A $7750
B $8850
C $11350
D $12450
ANSWER A
➡️QUESTION⬅️
Which may be included in an income and expenditure account?
A bad debts
B opening balance on the bank account
C purchase of equipment
D subscriptions received for the following financial year
ANSWER A
➡️QUESTION⬅️
Which type of labour would be classified as direct?
1 factory managers
2 factory office staff
3 factory production workers
A 1,2 and 3
B 1 and 3 only
C 2only
D 3only
ANSWER D
➡️QUESTION⬅️
Which group contains only indirect costs?
A carriage inwards, factory rent, wages of factory supervisors
B carriage inwards, raw materials, wages of machine operators
C depreciation of machinery, factory rent, wages of factory supervisors
D depreciation of machinery, raw materials, wages of machine operators
ANSWER C
➡️QUESTION⬅️
A trader does not keep full accounting records.
How can credit purchases for his first year of trading be calculated?
A cheques paid + discounts received + amount owing to suppliers at year end
B cheques paid + discounts received — amount owing to suppliers at year end
C cheques paid — discounts received + amount owing to suppliers at year end
D cheques paid — discounts received — amount owing to suppliers at year end
ANSWER A