A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 4 - 6 of 50
Question 4
Question MCQ▾
Find out operating profit from the following data:
Sales | $ 50,000 |
Variable Cost | 60% |
Fixed costs | $ 12,000 |
Choices
Choice (4) | |
---|---|
a. | 5000 |
b. | 8000 |
c. | 4000 |
d. | 2000 |
Answer
b.Explanation
Sales | $ 50,000 |
Less: Variable Cost@60% | 30,000 |
Contribution | 20,000 |
Less: Fixed costs | $ 12,000 |
Operating Profit | $ 8,000 |
Question 5
Question MCQ▾
A and B are partners sharing Profits in the ratio of 3: 2. From 1st January 1988, they admit C into Partnership giving him share of Profits with a guarantee Rs 6.000 minimum. A and B continue to share Profits as before. Profits of the firm for 1988 were $ 24,000. How much amount finally due to each partner?
Choices
Choice (4) | |
---|---|
a. | 11520,4800, 7680 |
b. | 7680,11520, 4800 |
c. | 11520,7680, 400 |
d. | 4800,7680, 11520 |
Answer
c.Explanation
New profit-sharing ratio has been calculated as under:
Thus, r
Because of admission of new partner, the old partners are entitled to only four-fifth of the firms profits which shall be divided in their old profit-sharing ratio.
Hence,
Therefore, new ratio will be
Share of profit will be
Question 6
Question MCQ▾
The following is the position of current assets and current liabilities of Z ltd:
1995 | 1996 | |
Provision for doubtful debts | $ 1,000 | - |
Short-term loans | 10,000 | 19,000 |
Creditors | 15,000 | 10,000 |
Bills payable | 20,000 | 40,000 |
The company incurred a loss of $ 45,000 during the year. What will be the cash flow from operating activities?
Choices
Choice (4) | |
---|---|
a. | -32000 |
b. | -22000 |
c. | + 22000 |
d. | -24000 |
Answer
b.Explanation
Net loss for the year Adjustments for: Less decrease in provision for doubtful debt Operating loss before working capital changes Add: Increase in current liabilities: Short-term loans Bills payable Less: Decrease in current liabilities: Creditors Cash used or lost in operating activities | $ 9,000 20,000 | $ - (45000) - (1000) - (46000) + 29000 - (17000) -5000 - (22000) |