IGCSE Accounting Paper-1: Specimen Questions with Answers 270 - 274 of 338

Question number: 270

Edit

One Liner Question▾

Write in Brief

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

The Various Methods of Depreciation

Question number: 271

Edit

One Liner Question▾

Write in Brief

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 number: 272

Edit

One Liner Question▾

Write in Brief

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 2020The year ended 31 March 2020

$

Closing Stock

42000

Carriage Inwards

15000

Selling Expenses

3600

Wages

37000

Opening Stock

30000

Income Tax

10000

Purchases

140000

Sales

240000

Administrative Expenses

8400

Profit on Sale of Machinery

4000

Question number: 273 (1 of 5 Based on Passage) Show Passage

Edit

Short Answer Question▾

Write in Short

Calculate showing your workings

Net Profit Ratio

Explanation

Question number: 274 (2 of 5 Based on Passage) Show Passage

Edit

Short Answer Question▾

Write in Short

Calculate showing your workings

Operating Ratio (Marks 3)

Explanation

Choose Paper