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

Question 17

Question

MCQ▾

Calculate cash from operating activities from the following balances:

Current Assets and Current liabilities

Current Assets and Current Liabilities
19921993
Debtors80,00060,000
Bills receivable7,00010,000
Creditors50,00055,000
Bills payable8,0006,000
Outstanding expenses1,0001,500
Prepaid expenses1,8001,600
Accrued income800900
Income received700-

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

Choices

Choice (4)

a.

1,00, 000

b.

1,20, 000

c.

1,19, 900

d.

1,19, 000

Answer

c.

Explanation

Current Assets and Current Liabilities
Operating profit before working capital changes

Add:

Decrease in assets:

Debtors

Prepaid expenses

Add:

Increase in current liabilities:

Creditors

Outstanding expenses

Less:

Increase in current assets:

Bills receivable

Accrued income

Less:

Decrease in current liabilities:

Bills payable

Income received in advance

Net cash from Operating Activities

$

20000

200

5000

500

3000

100

2000

700

$

1,00, 000

25,700

12,25, 700

5800

1,19, 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

Answer

a.

Explanation

Their profit-sharing ratio as per their capital

Thus, the answer is 16800,18900, 2100.

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