CIE Accounting Paper-1: Specimen Questions 15 - 18 of 214

Question number: 15

MCQ▾

Question

What amount should be debited in the Sushan account when sales to Sushan $152 posted to her account as $125?

Choices

Choice (4) Response
a.

$162

b.

$27

c.

$72

d.

$152

Answer

b.

Explanation

Under casting is error which was posted with less amount compare to the original amount. Sushan account is debited with $125 instead of $152 which shows that $27 is short debit.

Question number: 16

MCQ▾

Question

Who perform analyzing financial information of the company?

Choices

Choice (4) Response
a.

Lawyer

b.

Accountant

c.

Cashier

d.

Shareholder

Answer

b.

Explanation

An accountant performs the task of analyzing the financial information of the company.

They verify each and every transaction involved in the day to day activity of the company during the accounting year.

Question number: 17

MCQ▾

Question

Which one of the following is NOT a double side error?

Choices

Choice (4) Response
a.

Error of complete omission

b.

Error of commission

c.

Error of principle

d.

Posting to wrong account

Answer

b.

Explanation

In rectification of errors it is important to note that whether an error affects a single account or double account. Error of complete omission, error of principle and posting to wrong account were the double side errors.

Question number: 18

MCQ▾

Question

Maria’s trial balance for 31 December 2009 includes the following balances.

Marias trial balance for year ended 31 December 2009

Marias inventory at 31st December 2009 $300

Particulars

$

Sales

Inventory at 1 January 2009

Purchases

Expenses

4200

200

2800

800

What is Maria’s net profit for the year?

Choices

Choice (4) Response
a.

$500

b. $700
c.

$800

d.

$400

Answer

b.

Explanation

Trading account of Maria as on 31st December 2009

Trading account of Maria for the year 31st December 2009

In this table Trading account of Maria for the year 31st December 2009

Particulars

$

Particulars

$

Opening inventory

Purchases

Expenses

Gross Profit (Balancing figure)

200

2800

800

700

Sales

Closing inventory

4200

300

4500

4500

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