O-level ACCOUNTING 0452/01 Paper 1 Multiple Choice May/June 2009

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
International General Certificate of Secondary Education
ACCOUNTING 0452/01
Paper 1 Multiple Choice May/June 2009
1 hour
Additional Materials: Multiple Choice Answer Sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
READ THESE INSTRUCTIONS FIRST
Write in soft pencil.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Write your name, Centre number and candidate number on the Answer Sheet in the spaces provided
unless this has been done for you.
There are forty questions on this paper. Answer all questions. For each question there are four possible
answers A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
Calculators may be used.
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1 Zafar runs a transport business and has a fleet of motor vehicles.
Which is a liability to Zafar?
A depreciation of motor vehicles for the year
B motor vehicle expenses outstanding
C motor vehicle insurance paid in advance
D stock of fuel for motor vehicles
2 Miriam had the following assets and liabilities on 30 December 2008.
$
motor vehicles 5 000
stock 16 000
debtors 4 000
bank (dr) 3 000
creditors 11 000
On 31 December 2008 Miriam invested a further $4500 as capital.
What was Miriam’s capital on 31 December 2008?
A $21 500 B $28 000 C $32 500 D $43 500
3 Which appears in a balance sheet of a sole trader?
A drawings
B equipment repairs
C gross profit
D opening stock
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4 At the end of her first year of trading, Mona provides the following information.
$
sales 50 500
purchases 44 100
carriage inwards 2 300
carriage outwards 3 900
closing stock 4 600
What is Mona’s gross profit?
A $6400 B $7100 C $8700 D $11 000
5 Which accounting principle requires the financial transactions of a business to be treated
separately from those of the owner?
A business entity
B duality
C going concern
D matching
6 A business trains its staff to use computers. The only aspect recorded in the accounting records
is the costs of the training courses and the computers. The value to the business of the new skills
is not recorded.
Which accounting principle is being applied?
A consistency
B money measurement
C prudence
D realisation
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7 John’s financial year ends on 31 December.
In 2008 he paid $16 500 for advertising in the local newspaper. This was for 15 months to
31 March 2009.
What will be recorded in John’s balance sheet at 31 December 2008?
$
A accrual 3 300
B accrual 13 200
C prepayment 3 300
D prepayment 13 200
8 The final accounts of a business are prepared on the basis that the business has no intention of
significantly reducing the size of its operation in the foreseeable future.
Which accounting principle is being applied?
A business entity
B consistency
C going concern
D realisation
9 A debit note is issued by a business.
Why has this debit note been issued?
A goods have been received from a supplier
B goods have been returned by a customer
C goods have been returned to a supplier
D goods have been sent to a customer
10 On 1 April Khalid sold goods on credit to Yasmin.
Yasmin returned some of these goods to Khalid the following day.
In which order will Khalid issue business documents in April?
A credit note, invoice, statement
B invoice, credit note, statement
C invoice, statement, credit note
D statement, credit note, invoice
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11 Why does a trader offer a trade discount to his customers?
A to encourage bulk buying
B to encourage early payment
C to increase the customer’s profit
D to increase the trader’s profit