CIE Accounting Paper-1: Specimen Questions 9 - 11 of 214

Question number: 9

MCQ▾

Question

Which is not a current asset?

Choices

Choice (4) Response
a.

Bills receivables

b. Accrued income
c.

Prepaid expenses

d.

Loose tools

Answer

d.

Explanation

Current assets are easily converted into cash within one year. The current asset includes Cash, Bank, Debtors, Bills Receivables, inventory, prepaid expenses, accrued income and marketable securities. Whereas loose tools is a fixed assets

Question number: 10

MCQ▾

Question

The following information is extracted from the salary account of a business.

Salary transaction of the accounting 1st January 2013 to 31st December 2013

How much salary was payable for the year ended 31 December 2013 find it

$

Owing at 1 January 2013

400

Salary paid in year ended 31 December 2013

2700

Salary paid in advance at 31 December 2013

250

How much salary was payable for the year ended 31 December 2013?

Choices

Choice (4) Response
a.

2550

b.

2700

c.

2050

d.

2300

Answer

c.

Explanation

Salary should be payable as on 31st December 2013 or at the end of the accounting year.

Salary should be payable as on 31st December 2013 or at the end of the accounting year is given.

Particular

Amount

$

Salary

Less Paid for last years

Less Paid for next year

2700

400

________

2300

250

________

2050

Question number: 11

MCQ▾

Question

Which would appear in an income statement?

Choices

Choice (4) Response
a.

Drawings

b.

Cost of Goods Sold

c.

Trade payables

d.

Bank

Answer

b.

Explanation

The carrying value of the goods which are going to be sold during the accounting year is known as cost of goods sold.

CostofGoodsSold=BeginningInventory+PurchasesMadeDuringtheReportingPeriodEndingInventory

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