Cambridge International AS & A Level
ACCOUNTING 9706/13
Paper 1 Multiple Choice May/June 2025
1 hour
You must answer on the multiple choice answer sheet.
*2717224476*
You will need: Multiple choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
INSTRUCTIONS
There are thirty questions on this paper. Answer all questions.
For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet.
Follow the instructions on the multiple choice answer sheet.
Write in soft pencil.
Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
Do not use correction fluid.
Do not write on any bar codes.
You may use a calculator.
INFORMATION
The total mark for this paper is 30.
Each correct answer will score one mark.
Any rough working should be done on this question paper.
This document has 12 pages. Any blank pages are indicated.
06_9706_13_2025_1.12a
© UCLES 2025 [Turn over
, 2
1 What are disadvantages of operating as a partnership compared to operating as a sole trader?
1 Partners may be liable for the actions of the other partners.
2 Profits have to be shared between partners.
3 There is a risk of disputes between partners.
A 1, 2 and 3 B 1 and 2 only C 1 and 3 only D 2 and 3 only
2 A business has the following balances at the end of a financial period.
$
non-current assets 102 000
trade receivables 39 000
trade payables 27 000
profit for the period 65 000
drawings 32 000
long-term loan 50 000
What is the closing balance on the owner’s capital account at the end of the financial period?
A $32 000 B $64 000 C $97 000 D $141 000
3 A sole trader uses the double entry system to record their business transactions.
Which transaction does not follow the double entry rules?
A An expense account is debited at the end of the year when there is an expense prepaid on that
date.
B The capital account is credited when the sole trader introduces their personal computer to the
business.
C The provision for motor vehicles depreciation account is debited when a motor vehicle is sold.
D The purchases account is credited when the sole trader draws goods from the business.
4 A business owns a property which is rented out to tenants.
Which of the following costs should be treated as capital expenditure?
A extending the kitchen area
B legal fee for a 5-year tenancy agreement
C repainting the property
D replacing a water pipe
© UCLES 2025 06_9706_13_2025_1.12a
ACCOUNTING 9706/13
Paper 1 Multiple Choice May/June 2025
1 hour
You must answer on the multiple choice answer sheet.
*2717224476*
You will need: Multiple choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
INSTRUCTIONS
There are thirty questions on this paper. Answer all questions.
For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet.
Follow the instructions on the multiple choice answer sheet.
Write in soft pencil.
Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
Do not use correction fluid.
Do not write on any bar codes.
You may use a calculator.
INFORMATION
The total mark for this paper is 30.
Each correct answer will score one mark.
Any rough working should be done on this question paper.
This document has 12 pages. Any blank pages are indicated.
06_9706_13_2025_1.12a
© UCLES 2025 [Turn over
, 2
1 What are disadvantages of operating as a partnership compared to operating as a sole trader?
1 Partners may be liable for the actions of the other partners.
2 Profits have to be shared between partners.
3 There is a risk of disputes between partners.
A 1, 2 and 3 B 1 and 2 only C 1 and 3 only D 2 and 3 only
2 A business has the following balances at the end of a financial period.
$
non-current assets 102 000
trade receivables 39 000
trade payables 27 000
profit for the period 65 000
drawings 32 000
long-term loan 50 000
What is the closing balance on the owner’s capital account at the end of the financial period?
A $32 000 B $64 000 C $97 000 D $141 000
3 A sole trader uses the double entry system to record their business transactions.
Which transaction does not follow the double entry rules?
A An expense account is debited at the end of the year when there is an expense prepaid on that
date.
B The capital account is credited when the sole trader introduces their personal computer to the
business.
C The provision for motor vehicles depreciation account is debited when a motor vehicle is sold.
D The purchases account is credited when the sole trader draws goods from the business.
4 A business owns a property which is rented out to tenants.
Which of the following costs should be treated as capital expenditure?
A extending the kitchen area
B legal fee for a 5-year tenancy agreement
C repainting the property
D replacing a water pipe
© UCLES 2025 06_9706_13_2025_1.12a
