IGCSE Accounting Paper-1: Specimen Questions with Answers 230 - 232 of 338
Question 230
Edit
Write in Brief
One Liner▾State the amount required to restore the imprest on 1stNovember 2019
________. (Marks-1)
Explanation
As the balance b/d on 1stNovember 2019 is $1. So, the amount required to restore the imprest should be
Question 231
Edit
Question
MCQ▾Vikas is a trader. He provided the following information on 30 September 2019. (Marks 1)
| $ | |
| Assets | 54000 |
| Liabilities | 12000 |
His capital on 1 October 2018 was $40 000. He also made drawings of $3000 during the year.
What is Vikas’ net profit for the year ended 30 September 2019?
Choices
| Choice (4) | |
|---|---|
| a. | $5000 |
| b. | $3000 |
| c. | $42000 |
| d. | $2000 |
Answer
a.Explanation
Applying the concept accounting equation, we can get the value of closing capital.
Question 232
Edit
Write in Short
Short Answer▾Name any three external users of financial statements and state the perspective from which each of the three user Analyse the financial statements to take their decisions.
| User | What they Analyse? |
Explanation
| User | What they Analyse? |
| (I) Lenders | Lenders see the solvency of the business. They Analyse whether the company is able to repay the principle amount of loan as well as the interest on time or not. For this, they check cash flow position and the profitability of the business. |
| (II) Trade Creditors | Creditors look at the Liquidity of the business. Liquidity means the ability to pay off short term debts. Liquidity depends on amount of current assets one has relative to its current liabilities. |
| (III) Government | As government needs information for tax purpose, they check the profits of the business. |