IGCSE Accounting Paper-1: Specimen Questions with Answers 230 - 232 of 338

Question number: 230

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One Liner Question▾

Write in Brief

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 number: 231

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MCQ▾

Question

Vikas is a trader. He provided the following information on 30 September 2019. (Marks 1)

He provided the following information on 30 September 2019. He provided the following information on 30 September 2019.

$

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 number: 232

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Short Answer Question▾

Write in Short

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.

Three external users of financial statements and state the perspective Three external users of financial statements and state the perspective

User

What they Analyse?

Explanation

Three external users of financial statements and state the perspective Three external users of financial statements and state the perspective

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.

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