# A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 17 - 18 of 50

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## Question 17

### Question

MCQ▾

Calculate cash from operating activities from the following balances:

Current Assets and Current liabilities

 1992 1993 Debtors 80,000 60,000 Bills receivable 7,000 10,000 Creditors 50,000 55,000 Bills payable 8,000 6,000 Outstanding expenses 1,000 1,500 Prepaid expenses 1,800 1,600 Accrued income 800 900 Income received 700 -

Operating profit before working capital changes was \$ 1,00, 000

Choice (4)

a.

1,00, 000

b.

1,20, 000

c.

1,19, 900

d.

1,19, 000

c.

### Explanation

 Operating profit before working capital changesAdd:Decrease in assets:DebtorsPrepaid expensesAdd:Increase in current liabilities:CreditorsOutstanding expensesLess:Increase in current assets:Bills receivableAccrued incomeLess:Decrease in current liabilities:Bills payableIncome received in advanceNet cash from Operating Activities \$20000200500050030001002000700 \$1,00, 00025,70012,25, 70058001,19, 000

## Question 18

### Question

MCQ▾

A, B and C started a business by investing \$ 1, 20, 000 1,35, 000 and 1,50, 000. Find the share of each partner from the annual profit of \$ 56700?

### Choices

Choice (4)

a.

16800,18900, 21000

b.

16800,21000, 18900

c.

21000,16800, 18900

d.

18900,16800, 21000

a.

### Explanation

Their profit-sharing ratio as per their capital

Thus, the answer is 16800,18900, 2100.

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