Accounts a Level
CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Subsidiary Level and Advanced Level
ACCOUNTING
PAPER 1 Multiple Choice
9706/1
MAY/JUNE SESSION 2002
1 hour
Additional materials: Multiple Choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended)
TIME
1 hour
INSTRUCTIONS TO CANDIDATES Do not open this booklet until you are told to do so. Write your name, Centre number and candidate number on the answer sheet in the spaces provided unless this has already been done for you. There are thirty questions in 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 very carefully the instructions on the answer sheet. INFORMATION FOR CANDIDATES 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.
This question paper consists of 10 printed pages and 2 blank pages.
SP (SLC/JG) S23703/1 © CIE 2002
[Turn over
2 1 What is the accounting equation for capital employed? A B C D current assets – current liabilities fixed assets + current assets – current liabilities fixed assets + current assets + current liabilities net assets – current liabilities
2
When preparing a sole trader’s annual accounts, no adjustments were made for closing amounts prepaid. What is the effect of these omissions? A B C D net profit overstated net profit understated current assets overstated creditors understated creditors understated owner’s capital overstated
current assets understated owner’s capital understated
3
Which item is revenue expenditure? A B C D cost of painting new office premises during construction cost of repairs to factory plant and machinery legal fees for the purchase of new factory premises wages of a company’s own workmen for
ACCOUNTING
PAPER 1 Multiple Choice
9706/1
MAY/JUNE SESSION 2002
1 hour
Additional materials: Multiple Choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended)
TIME
1 hour
INSTRUCTIONS TO CANDIDATES Do not open this booklet until you are told to do so. Write your name, Centre number and candidate number on the answer sheet in the spaces provided unless this has already been done for you. There are thirty questions in 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 very carefully the instructions on the answer sheet. INFORMATION FOR CANDIDATES 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.
This question paper consists of 10 printed pages and 2 blank pages.
SP (SLC/JG) S23703/1 © CIE 2002
[Turn over
2 1 What is the accounting equation for capital employed? A B C D current assets – current liabilities fixed assets + current assets – current liabilities fixed assets + current assets + current liabilities net assets – current liabilities
2
When preparing a sole trader’s annual accounts, no adjustments were made for closing amounts prepaid. What is the effect of these omissions? A B C D net profit overstated net profit understated current assets overstated creditors understated creditors understated owner’s capital overstated
current assets understated owner’s capital understated
3
Which item is revenue expenditure? A B C D cost of painting new office premises during construction cost of repairs to factory plant and machinery legal fees for the purchase of new factory premises wages of a company’s own workmen for