IGCSE Accounting Paper-1: Specimen Questions with Answers 271 - 276 of 338

Get unlimited access to the best preparation resource for Bank-PO : get questions, notes, tests, video lectures and more- for all subjects of Bank-PO.

Question 271

Edit

Write in Brief

One Liner▾

State the meaning of provision. (Marks 1)

Explanation

  • Provision is an amount of set aside from profits to cover a known liability that may arise in future.
  • For Ex- making a provision for bad debts when it is known that some of the debtors may fail to pay their debts.

Question 272

Edit

Write in Brief

One Liner▾

Explain any two characteristic of accounting. (Marks 2)

Explanation

The two characteristics of accounting are-

  • Identification: It involves identifying those events or transactions which are monetary in nature. i.e.. they are measurable in terms of money.
  • Recording: It implies entering the transactions in journal or the books of prime entry.

Passage

Bhargav Traders provides the following information for the year ended 31 March 2020-

The Year Ended 31 March 2020
$
Closing Stock42000
Carriage Inwards15000
Selling Expenses3600
Wages37000
Opening Stock30000
Income Tax10000
Purchases140000
Sales240000
Administrative Expenses8400
Profit on Sale of Machinery4000

Question 273 (1 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Which of the above two ratios are complementary?

Explanation

Operating Ratio and Operating Profit Ratio

Explanation:

Net Sales is the sum of Operating Costs and Operating Profit. i.e..

Or

Question 274 (2 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate showing your workings

Net Profit Ratio

Explanation

Question 275 (3 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate showing your workings

Gross Profit Ratio (Marks 4)

Explanation

Question 276 (4 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate showing your workings

Operating Ratio (Marks 3)

Explanation

🎯 Select Paper 📂

🚀 Consider Exploring

Developed by: