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

Question 17

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Question

MCQ▾

Calculate cash from operating activities from the following balances:

Current Assets and Current liabilities

Current Assets and Current liabilitiesCurrent 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 liabilitiesCurrent Assets and Current liabilities
Operating profit before working capital changes AddDecrease in assets: AddIncrease in current liabilities: LessIncrease in current assets: LessDecrease in current liabilities: Net cash from Operating Activities: Debtors Prepaid expenses : Creditors Outstanding expenses : Bills receivable Accrued income : Bills payable Income received in advance$ 20000 200 5000 500 3000 100 2000 700$ 1,00,000 25,70012,25,700 5800 1,19,000

Question 18

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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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