IGCSE Accounting Paper-1: Specimen Questions with Answers 66 - 67 of 214

Question number: 66

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MCQ▾

Question

What is an intangible asset?

Choices

Choice (4) Response

a.

Furniture

b.

Machinery

c.

Cash

d.

Good will

Answer

d.

Explanation

Intangible assets are those assets which will increase the value of the assets indirectly. Goodwill, patent and copyrights are intangible assets which will increase the assets value of the company.

Question number: 67

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Short Answer Question▾

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In the table below, place a tick (√) under the correct heading to show whether the item is income or expense.

List of items appeared in the income and expenditure accounts.

Table of List of items appeared in the income and expenditure accounts.

Income

Expenses

Sale of old sports materials

Purchase of books and Periodicals

Entrance fees

Explanation

List of items appeared in the income and expenditure accounts

shows table List of items appeared in the income and expenditure accounts.

Income

Expenses

Sale of old sports materials

Purchase of books and Periodicals

Entrance fees

Solution: - Sale of old sports materials and entrance fees are income of the firm whereas Purchase of books and periodicals are the expenses to the firm. The firm has to pay with respect to the purchase of books and periodicals.

Solution: - Sale of old sports materials and entrance fees are income of the firm whereas Purchase of books and periodical