IGCSE Accounting Paper-1: Specimen Questions with Answers 280 - 281 of 338

Question 280

Question

MCQ▾

All are the attributes of an asset except-

Choices

Choice (4)

a.

Resources owned by a business entity

b.

Not measurable in monetary terms

c.

Resources contributed by the outsiders

d.

Future economic benefits

Answer

b.

Explanation

  • Assets are valuable resources owned by a business entity. These can either be contributed by the owner himself or by the outsiders. They can be physical such as goods, machinery, building etc. or intangible like patent.
  • Assets have the ability to provide economic benefits to business in terms of cash inflows resulting from them in future periods.
  • Assets have measurable in terms of money. i.e.. one can sell an asset in the market and get some money.

Question 281

Describe in Detail

Essay▾

Show the effect of each of the above on the profit for the year. Write “no effect” for the error which does not affect the profit. (Marks 5)

Sudhanshu

Statement of Corrected Profit for the Year Ended 31 March 2019

Statement of Corrected Profit for the Year Ended 31 March 2019
Increase in Profit $Decrease in Profit

$

Profit

$

Profit for the year before rectification6520
Error 1
Error 2
Error 3
Error 4
Corrected Profit for the year

Explanation

Sudhanshu

Statement of Corrected Profit for the Year Ended 31 March 2019

Statement of Corrected Profit for the Year Ended 31 March 2019
Increase in Profit $Decrease in Profit

$

Profit

$

Profit for the year before rectification6520
Error 190
Error 2 No Effect××
Error 32000
Error 4270
20003601640
Corrected Profit for the year8160

🎯 Select Paper