CIE Accounting Paper-1: Specimen Questions 54 - 56 of 214

Question number: 54

MCQ▾

Question

Neena bought goods on credit from Richard for $1000. Ruth offers 4½% discount for payment within fifteen days. Neenai paid her account within this period. Choose the amount discount received by the Neena.

Choices

Choice (4) Response
a.

$65

b. $45
c.

$35

d.

$55

Answer

b.

Explanation

Discount will be provided to the customer when they paid the due amount with in the credit limit period. Hence Neena receives $45 as a discount for her purchase of goods from Richard.

Discount=Amountofcreditpurchase×percentageofdiscount

Discount=1000×4.5100

=$45

Question number: 55

MCQ▾

Question

Among the following whose aim is to create profit from the business?

Choices

Choice (4) Response
a.

Trading

b.

Service

c. Question does not provide sufficient data or is vague
d. None of the above

Answer

a.

Explanation

The main aim of the trading business is to earn profit and maintain the business with more profitable one. The service business provides services to the customers. In trading business goods are purchased and sold it out without any further process.

Question number: 56

MCQ▾

Question

Where are the personal accounts of suppliers from whom goods received on credit found?

Choices

Choice (4) Response
a.

Purchases journal

b.

Purchases ledger

c.

Sales ledger

d.

Sales journal

Answer

b.

Explanation

Personal accounts of suppliers were written in the purchases ledger from which goods received on credit. The ledger contains all account of suppliers. The Purchase journals are used for all credit purchases of goods made during the year.

Share