IGCSE Accounting Paper-1: Specimen Questions with Answers 270 - 275 of 338

Question 270

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State any two methods of depreciation

(I) ________

(II) ________ (2)

Explanation

(I) Straight line Method

(II) Diminishing Balance Method

The various methods of depreciation are-

The Various Methods of Depreciation

Question 271

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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

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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)

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Short Answer▾

Calculate showing your workings

Operating Ratio (Marks 3)

Explanation

Question 274 (2 of 5 Based on Passage)

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Calculate showing your workings

Gross Profit Ratio (Marks 4)

Explanation

Question 275 (3 of 5 Based on Passage)

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Calculate showing your workings

Net Profit Ratio

Explanation

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