IGCSE Accounting Paper-1: Specimen Questions with Answers 89 - 92 of 341
Question 89
Explanation
Owners and Management
The internal users are those individual or may be a group of persons who are within the organization like owners, management, employees and trade unions. The users are determined according to their need of information.
Passage
James՚s business had inventory (stock) on 1 July 2014 of $ 12000 and on 30 June 2014 of $ 13000. His cost of goods sold for the year ended 30 June 2014 was $ 25000.
Question 90 (1 of 2 Based on Passage)
Write in Short Short Answer▾
Calculate his rate of inventory (stock) turnover in times. Show all your workings.
EditExplanation
2 times
Question 91 (2 of 2 Based on Passage)
Write in Short Short Answer▾
Calculate his rate of inventory (stock) turnover in days. Show all your workings.
EditExplanation
2 times
The stock turnover rate may be calculated in days also:
Question 92
Question MCQ▾
Identify the type error involved in the transaction:
Goods of $ 6000, purchased on credit from Vincent are recorded in the books as $ 6500.
Choices
Choice (4) | |
---|---|
a. | Error of casting |
b. | Error of posting |
c. | Error of recording |
d. | Errors of commission |
Answer
c.Explanation
The error arises when transaction is wrongly recorded in the books of original entry. In the above transaction $ 6000 was wrongly recorded in the books as $ 6500 which represents overcasting of $ 500.