Cambridge IGCSE ACCOUNTING 0452/12

Which items are included in an income and expenditure account prepared for a sports club?

• 1 cost of new furniture purchased during the year for the clubhouse

• 2 depreciation on furniture and sports equipment

• 3 rates for the clubhouse paid in advance for the next financial year

• 4 subscriptions that remain unpaid by club members at the end of the financial year

What is the main function of book-keeping?

• communicating information

• interpreting information

• recording information

• summarising information

Melody is a music club. The club holds a music concert once every year. Prizes are awarded to musicians selected by a judge. What was the profit from the concert?

• A $950

• B $1050

• C $1450

• D $2100

What does the sales ledger of a business contain?

• accounts of trade payables

• accounts of trade receivables

• sales account

• sales ledger control account

What is meant by the term equity?

• A dividend paid to ordinary shareholders

• B funds raised through borrowing

• C interest paid to debenture holders

• D total funds provided by shareholders

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

Which entries would Razia make on 2 October?

• A bank - Debit

  debts recovered - Credit

• B bank - Debit

  irrecoverable debts - Credit

• C debts recovered - Debit

  bank - Credit

• D irrecoverable debts - Debit

  bank - Credit

A cheque received from Kate, a credit customer, was dishonored. How was this dishonoured cheque recorded?

• bank - Debit

  Kate - Credit

• Kate - Debit

  bank - Credit

• Kate - Debit

  sales - Credit

• sales - Debit

  Kate - Credit

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

Which item is added to the profit for the year in a partnership appropriation account?

• A interest on capital

• B interest on drawings

• C partners’ drawings

• D partners’ salaries