IGCSE Accounting Revision

Front

What was the profit or loss for Khalid's business for the year ended 31 March 2019, given the following information? Non-current assets: $75,000, Current assets: $32,000, Current liabilities: $24,000, Drawings during the year: $19,000.

Back

$12,000 profit

Front

Which accounting principle requires profit to be recognised as earned when the legal ownership of goods passes to the purchaser?

Back

Realisation

Front

The employees of a business are highly skilled but this is not recorded in the financial statements of the business. Which accounting principle is being applied?

Back

money measurement

Front

‘Financial information must be free from errors and bias.’ To which accounting objective does this refer? Options: comparability, relevance, reliability, understandability

Back

reliability

Front

Amber updated her cash book after receiving her bank statement. The updated cash book balance was an overdraft of $250. The bank statement did not include cheques not presented, $96, and amounts not credited, $183. What was the balance shown on the bank statement?

Back

$337 debit

Front

Which statement about a bank reconciliation statement is correct? Options: It includes items recorded by the trader not yet recorded by the bank., It is a copy of the trader’s account as it appears in the books of the bank., It is sent by the bank to the trader at regular intervals., It summarises the bank columns in a trader’s cash book.

Back

It includes items recorded by the trader not yet recorded by the bank.

Front

What was the profit or loss on the sale of a machine purchased for $18,000, depreciated at 20% per annum using the reducing balance method, and sold for $13,300 on 1 July 2018?

Back

loss $1100

Front

What entries would Amelia make in her ledger for 2 months’ rent paid in advance by a tenant? Options: credit the rent payable account and carry down as a debit balance, debit the rent payable account and carry down as a credit balance, credit the rent receivable account and carry down as a debit balance, debit the rent receivable account and carry down as a credit balance

Back

debit the rent receivable account and carry down as a credit balance

Front

An invoice for the purchase of goods on credit, $980, was incorrectly recorded in the purchases journal as $890. Which type of error was made?

Back

Original Entry

Front

Which accounts would appear in a purchases ledger? Carriage inwards, purchases, purchases returns, Sadie, a credit supplier.

Back

Purchases and purchases returns.