Free CXC Principles of Accounts Paper 1 May/June 2017 past paper from 2017. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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CSEC Principles of Accounts Paper 1 May/June 2017 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 1 May/June 2017 past paper from 2017. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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Accounting is the process of the I. gathering and recording information II. raising of funds for a business III. providing information which influences decisions
I and II only
I and III only
II and III only
I, II and III
Which of the following groups of persons may be LEAST interested in using accounting information to determine how well businesses are managed?
Owners
Investors
Employees
Customers
Which of the following states the correct order of the stages in the accounting cycle, before Final Accounts?
Posting to ledger, journalizing, trial balance
Posting to ledger, trial balance, journalizing
Journalizing, trial balance, posting to ledger
Journalizing, posting to ledger, trial balance
Which of the following terms is described in documents showing exchanges of goods and services?
Journal
Transaction
Balance Sheet
Trial Balance
A balance sheet serves the purpose of
showing the values of assets, liabilities and capital
calculating the profits and losses made
showing the value of the closing stock in hand
determining the available cash balance
Which of the following are examples of Current Liabilities? I. Mortgages II. Accounts Payable III. Accrued Wages
I and II only
I and III only
II and III only
I, II and III
Which of the following accounts is made up of real accounts ONLY?
Plant, machinery, inventory, receivables
Equipment, furniture, vehicles, plant
Vehicle, capital, building, prepayments
Cash, inventory, building, receivables
Which of the following lists of current assets is arranged in order of liquidity from least to most liquid?
Accounts receivable, prepayments, inventory, cash, bank
Prepayments, accounts receivables, cash, bank, inventory
Cash, bank, prepayments, accounts receivables, inventory
Inventory, accounts receivables, prepayments, bank, cash
The Cash Book is BEST used for recording
goods sold for cash
goods returned for cash
goods purchased for cash
cash receipts and cash payments
A. Portap bought goods for $500 on credit. In which book of prime entry will this be recorded?
Purchases Journal
Sales Journal
General Journal
Cash Book
A businessman offers a discount for prompt payment for goods purchased. Under which column in his Three-Column Cash Book would this be entered?
Bank
Cash
Discount allowed
Discount received
R. Stevens a petty cashier receives a float of $350. He spends $320 out of this and requests that his float be increased to $400. If his request is granted, how much will he receive?
$320
$350
$370
$400
An article is subject to a 20% trade discount. Its list price is $600. What is its sale price?
$120
$480
$580
$720
The total credit of the bank column of a Three-Column Cash Book is greater than the total debit. The MOST likely result for this situation is that
there was an overdraft
transactions were omitted from the debit side
some figures were overstated on the credit side
the incorrect transactions were entered on the credit side
Any expenditure which is written off entirely to the Income Statement is known as
liabilities
purchases
revenue expenditure
capital expenditure
Which of the following BEST describes the 'double entry' system of accounting?
A ledger account must have two sides.
An account must be written twice in the ledger.
Each transaction must be written in two subsidiary books.
Each transaction must have a debit entry and a credit entry.
A businessman incurred the following expenses. What is the total capital expenditure?
$ 6 000
$ 7 000
$ 8 000
$10 000
Mr Abel and Mr Blue purchased goods valued at $50 and $75 respectively from Mr Kane, on credit. Another customer paid cash for goods amounting to $550. Mr Kane took goods at cost for himself amounting to $500. Which of the following figures represents the total in Mr Kane's Sales Account?
$125
$425
$675
$1 175
Which of the following accounts are usually transferred to the Income Statement?
Rent, Premises, Drawings
Drawings, Rent, Purchases
Purchases, Furniture, Commission Received
Commission Received, Rent, Purchases
When current liabilities are subtracted from current assets, the result is termed
cash balance
capital owned
working capital
capital employed
K. Khan, a debtor of A and B Enterprises, settles his debt of $120 less 2\frac{1}{2}% discount by cheque. How should the double entry be recorded in the books of A and B Enterprises?
Dr K Khan $117 Dr Discount received $ 3 Cr Bank $120
Dr K Khan $117 Dr Discount allowed $3 Cr Bank $120
Dr Bank $117 Dr Discount allowed $ 3 Cr K Khan $120
Dr Bank $117 Cr Discount received $ 3 Cr K Khan $120
What does the $529 800 represent?
Total sales
Gross profit
Cost of sales
Total purchases
$185 530 represents
total sales
gross profit
cost of sales
total purchases
Item 24 refers to the following information.
Machinery Account $4 000 Stock Account $3 000 Purchases Account $1 000 Sales Account $5 000 Capital Account $3 000
The above balances appeared in the ledger of Mrs G. Dalton. What is the total of the trial balance?
$5 000
$6 000
$7 000
$8 000
The working capital of A. Young and Sons is $15 500. The total amount of current assets is $16 500. What is the total amount of current liabilities?
$ 1 000
$15 500
$16 500
$32 000
Items 26-27 refer to the following table which shows a trader's operation at the end of the trading period.
Sales $83 868 Sales Returns $ 1 570 Discounts Allowed $ 911 Inventory at Start $ 9 850 Inventory at Close $11 075 Purchases $52 640 Purchases Returns $ 762
What is the cost of goods sold?
$49 742
$50 653
$51 415
$53 103
What is the gross profit?
$31 645
$33 215
$34 023
$80 025
In the balance sheet, expenses owing will be listed as
fixed assets
current assets
current liabilities
long-term liabilities
A debt is considered a 'bad debt' if the debtor
pays late
fails to pay
clears the debt in parts
does not use money to pay
How does an increase in bad debts affect a sole trader's financial statements?
Increases the net profit
Decreases the net profit
Increases the gross profit
Decreases the gross profit
The gross profit of a firm is $7200. Bad debts are $200. Insurance paid is $1240, which includes a prepayment of $40. What is the net profit of the firm?
$5 720
$5 760
$5 800
$7 000
Control Accounts are needed to
locate errors
calculate ratios
calculate profits
record opening entries
Which of the following is a type of Control Account?
Cash Book
Balance Sheet
General Journal
Suspense Account
Cash Sales were not entered in the books. This is an error of
omission
principle
commission
complete reversal
What is Kay's credit sales for the month of May?
$ 6800
$ 8 800
$11 800
$14 800
At the end of the year the capital of a business was $33 000. At the beginning of the year the capital was $28 000. During the year the owner withdrew $2000 for personal use. What is his net profit for the year?
$ 5000
$ 7000
$30 000
$61 000
What is the inventory at the end of January?
$ 300
$ 500
$ 700
$1 300
Which of the following accounts are nominal?
Wages and Rent
Stock and Debtors
Machinery and Plant
Creditors and Fixtures
A customer who owed $20 000 returned goods valued at $3 000. He then settled his outstanding balance by paying $15 300. The discount allowed to this customer is
$7 700
$4 700
$3 000
$1 700
The purpose of an appropriation account is to
show how the net profit is distributed in a partnership or co-operative
change capital expenditure as agreed upon in the Articles of Association
enter all capital and revenue expenditure as stipulated in the Partnership Act
make appropriate changes related to net profit as agreed upon in the Articles of Association
Which two of the following items are NOT recorded in the Appropriation Account?
I. Interest on loans from partners II. Interest on capital III. Interest on drawings IV. Withdrawals by partners
I and III only
I and IV only
II and III only
II and IV only
Items 42--43 refer to the following information. Select the two terms below which correctly complete Items 42 and 43. I. debited to the Current Account II. credited to the Current Account III. debited to the Appropriation Account IV. credited to the Appropriation Account
Interest on drawings is
I and III only
I and IV only
II and III only
II and IV only
Interest on capital is
I and III only
I and IV only
II and III only
II and IV only
Mr Green and Mrs Brown agreed to establish a partnership and each deposited $5000 into a bank account, Green & Brown Co. How should this be recorded in the books of the partnership?
Cr Cash $10 000, Dr Capital $10 000.
Dr Green & Brown Co. $10 000, Cr Bank $10 000 each.
Dr Partnership Bank Account $10 000, Cr partners' Current Accounts $5000 each.
Dr Partnership Bank Account $10 000, Cr partners' Capital Accounts $5 000 each.
Which of the following features is associated with private limited companies?
Family owned
Shares not sold publicly
Financial statements published
Government agencies purchase shares
A company proposes a 10% rate of dividends. A shareholder who owns 500 two-dollar ordinary shares will receive dividends of
$ 10
$ 50
$100
$500
A company earned a net profit of $60 000 for the year ending 30 September 2016. Proposed dividends were: ordinary shares $10 000 and preference shares $15 000. The company decided to transfer $8000 to a general reserve. The retained earnings on 30 September 2016 were
$27 000
$33 000
$35 000
$93 000
When a company declares a dividend of 15%, the dividend warrant sent to a shareholder who owns 1500 ordinary $1 shares is
$ 100
$ 225
$1 500
$1 515
Which of the following is an example of a co-operative?
A bank
A sports club
A corporation
A credit union
What conclusions could be drawn from the Appropriation Account above? I. The company has recently come into existence. II. The company is engaged in profitable enterprise. III. More dividends can be given to the ordinary shareholders. (A) I and II only (B) I and III only (C) II and III only (D) I, II and III
I and II only
I and III only
II and III only
I, II and III
paying rent paying wages purchasing goods purchasing a new building
paying rent
paying wages
purchasing goods
purchasing a new building
The accumulated fund is
$ 5000
$15 000
$20 000
$25 000
What is Golf Club's ending cash balance for the month of April?
$ 4000
$14 200
$22 100
$36 300
The balance in the Income and Expenditure Account represents the
assets owned or liabilities owed by firms
profits or losses made from a profit- making activity
cash available to spend or amount owed to the bank
surplus or deficit arising from the operation of a non-trading entity
The direct labour cost is
$ 6000
$11 800
$17 800
$27 800
Which of the following may be used to calculate the cost of production?
Prime cost + factory overheads – opening work in progress + closing work in progress
Prime cost + factory overheads – opening work in progress + closing work in progress
Prime cost + factory overheads – opening work in progress – closing work in progress
Prime cost + factory overheads + opening work in progress – closing work in progress
The items raw materials inventory, work-in-progress inventory and finished goods inventory are MOST likely seen together on the balance sheet of a
garage
supermarket
shoe factory
bus company
Ms Hawk has a manufacturing business. The cost of her raw materials was $1900. Rates and rent totalled $2000, and factory wages amounted to $2500. The number of units produced was 640. What was the cost of ONE unit?
$4
$6
$10
$13
Which of the following is NOT considered a source document for the payroll?
Electronic timecard
Medical certificate
Attendance register
Clock card
Mr Amos is employed by a construction company at a rate of $7 per hour. During the week of 6 April 2008, he worked his basic week of 40 hours. The income tax due on his pay is $20, and he is also liable to pay social security contributions of 5% of his gross pay. What is Mr Amos' net pay?
$246
$260
$266
$280