0452 ACCOUNTING 0452/12 1 hour 45 minutes Candidates answer on the Question Paper. No Additional Materials are required.
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Course
ACCOUNTING 0452/12
Institution
ACCOUNTING 0452/12
ACCOUNTING 0452/12
1 hour 45 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may u...
Cambridge International Examinations
Cambridge International General Certificate of Secondary Education
0452 ACCOUNTING 0452/12
1 hour 45 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may use an HB pencil for any diagrams or graphs.
Do not use staples, paper clips, glue or correction fluid.
DO NOT WRITE IN ANY BARCODES.
Answer all questions.
You may use a calculator.
Where layouts are to be completed, you may not need all the lines for your answer.
The businesses mentioned in this Question Paper are fictitious.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
This document consists of 19 printed pages and 1 blank page.
[Type here]
, 2
There are 10 parts to Question 1.
For each of the parts (a) to (j) below there are four possible answers A, B, C and D. Choose the one
you consider correct and place a tick (✓) in the box to indicate the correct answer.
1 (a) A trader prepares his financial statements.
Which explanations correctly describe his reasons?
1 to be able to calculate his closing inventory
2 to know if he is receiving a return on his investment
3 to make sure that all financial transactions are recorded
4 to measure the progress of his business from year to year
A 1 and 2
B 2 and 4
C 3 and 4
D 4 only [1]
(b) When does a trader send a credit note?
A when he purchases goods on credit
B when he receives a return of goods sold on credit
C when he returns goods he purchased on credit
D when he sells goods on credit [1]
(c) A trader compared his bank statement with his cash book. He found that the bank statement
had included the bank charges twice in error and that one deposit had not yet been credited.
How are these items treated in a bank reconciliation statement which starts with the cash
book balance?
bank charges in error uncredited deposit
A added added
B added subtracted
C subtracted added
D subtracted subtracted
[1]
, 3
(d) Which statement is true about a sales ledger control account?
A Discount allowed appears on the credit side.
B Discount allowed appears on the debit side.
C Discount received appears on the credit side.
D Discount received appears on the debit side. [1]
(e) Agatha depreciates her fixtures and fittings at the rate of 10% per annum.
On 1 January 2015 she bought new fixtures and fittings costing $800. In error she debited the
repairs account with the purchase.
What was the effect of this error on the profit for the year ended 31 December 2015?
A $720 overstated
B $720 understated
C $880 overstated
D $880 understated [1]
(f) A company prepares a statement of changes in equity.
Which statement is true?
A It explains the changes in the non-current liabilities.
B It indicates if there has been a transfer to the general reserve.
C It is similar to the receipts and payments account in a club.
D It reconciles opening and closing balances on non-current assets. [1]
(g) A club has the following assets and liabilities.
$
equipment 1200
cash at bank 800
subscriptions in advance 300
subscriptions in arrears 410
accrued wages 85
What is the accumulated fund?
A $1805
B $1975
C $2025
D $2195 [1]
(h) Which items may appear in the income statement (trading account section) of a manufacturing
business?
A cost of production and inventories of finished goods only
B cost of production and inventories of work in progress and finished goods
C purchases of raw materials and inventories of finished goods only
D purchases of raw materials and inventories of raw materials only [1]
(i) An income statement shows the following.
$ $
Revenue 6000
Inventory at start of year 300
Purchases 3100
3400
Inventory at end of year 700 2700
Gross profit 3300
What is the rate of inventory turnover?
A 5.4 times
B 6.2 times
C 13.5 times
D 15.5 times [1]
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