IGCSE Accounting Paper-1: Specimen Questions with Answers 275 - 279 of 338

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: 275 (3 of 5 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

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 number: 276 (4 of 5 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

Calculate showing your workings

Operating Profit Ratio (Marks 1)

Explanation

Question number: 277 (5 of 5 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

Calculate showing your workings

Gross Profit Ratio (Marks 4)

Explanation

Question number: 278

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MCQ▾

Question

Purchases book was overcast by $300. Which of the following journal entry would correct this error? (Marks 1)

Choices

Choice (4)

a.

Debit- Purchases $300, Credit- Purchases Returns $300,

b.

Debit- Suspense $300, Credit- Purchases $300,

c.

Debit- Purchases $300, Credit- Trial Balance $300,

d.

Debit- Purchases $300, Credit- Suspense $300,

Answer

b.

Explanation

Purchases A/c has a normal debit balance. So, when purchases is overcast, Purchases A/c will be credited to reduce the overcast. Since, overcasting or under casting is one sided error, for the other side we use suspense A/c. Suspense A/c will be debited.

Question number: 279

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MCQ▾

Question

Which among the following is an external user of accounting information? (Marks 1)

Choices

Choice (4)

a.

Director of Research & Development

b.

Customer

c.

Purchasing Officer

d.

Inventory Clerk

Answer

b.

Explanation

  • External Users are the parties which are present outside the business organization whereas the internal users are the parties present inside the business organization.

  • Customer is an external user. Purchasing Officer, Director of Research & Development are part of internal management of the business and inventory clerk is an employee. These are internal users.

Image of the Internal Users

Image of the Internal Users

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