Cambridge O Level
ACCOUNTING 7707/12
Paper 1 Multiple Choice October/November 2024
1 hour 15 minutes
You must answer on the multiple choice answer sheet.
*4121689245*
You will need: Multiple choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
INSTRUCTIONS
There are thirty-five 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 35.
Each correct answer will score one mark.
Any rough working should be done on this question paper.
This document has 16 pages. Any blank pages are indicated.
11_7707_12_2024_1.1
© UCLES 2024 [Turn over
, 2
1 A trader prepares financial statements each year.
What do these help the trader to do?
A calculate the amount owing to credit suppliers
B calculate the cash drawings
C check the bank statement balance
D make decisions about the future
2 A trader bought new fixtures. He paid half the purchase price in cash and agreed to pay the balance
at a later date.
How does this purchase affect the accounting equation?
assets owner’s equity liabilities
A decrease decrease no effect
B decrease no effect increase
C increase decrease increase
D increase no effect increase
3 Which account is not kept in the nominal ledger?
A capital
B cash
C inventory
D purchases
© UCLES 2024 11_7707_12_2024_1.1
, 3
4 On 15 February Kalou made the following entries in his accounts.
debit $ credit $
bank 228 Droghba 240
discount allowed 12
Which transaction was being recorded?
A Droghba paid Kalou by cheque after taking a cash discount.
B Droghba paid Kalou by cheque after taking a trade discount.
C Kalou paid Droghba by cheque after taking a cash discount.
D Kalou paid Droghba by cheque after taking a trade discount.
5 Ranjit is a credit customer of Balbir. In April the following activities took place.
Balbir sold goods on credit to Ranjit.
Ranjit advised Balbir that some of the goods were damaged.
Balbir advised Ranjit of a reduction in the amount owing.
Which documents were used to record these activities?
A debit note, credit note and receipt
B invoice, credit note and receipt
C invoice, credit note and statement of account
D invoice, debit note and credit note
6 What is an advantage to a business of maintaining books of prime entry?
A A trial balance can be extracted directly from books of prime entry.
B Similar transactions are listed together in date order for reference.
C There is no need to make double entries in the ledger.
D Trade receivables and trade payables totals are readily available.
© UCLES 2024 11_7707_12_2024_1.1 [Turn Over
ACCOUNTING 7707/12
Paper 1 Multiple Choice October/November 2024
1 hour 15 minutes
You must answer on the multiple choice answer sheet.
*4121689245*
You will need: Multiple choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
INSTRUCTIONS
There are thirty-five 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 35.
Each correct answer will score one mark.
Any rough working should be done on this question paper.
This document has 16 pages. Any blank pages are indicated.
11_7707_12_2024_1.1
© UCLES 2024 [Turn over
, 2
1 A trader prepares financial statements each year.
What do these help the trader to do?
A calculate the amount owing to credit suppliers
B calculate the cash drawings
C check the bank statement balance
D make decisions about the future
2 A trader bought new fixtures. He paid half the purchase price in cash and agreed to pay the balance
at a later date.
How does this purchase affect the accounting equation?
assets owner’s equity liabilities
A decrease decrease no effect
B decrease no effect increase
C increase decrease increase
D increase no effect increase
3 Which account is not kept in the nominal ledger?
A capital
B cash
C inventory
D purchases
© UCLES 2024 11_7707_12_2024_1.1
, 3
4 On 15 February Kalou made the following entries in his accounts.
debit $ credit $
bank 228 Droghba 240
discount allowed 12
Which transaction was being recorded?
A Droghba paid Kalou by cheque after taking a cash discount.
B Droghba paid Kalou by cheque after taking a trade discount.
C Kalou paid Droghba by cheque after taking a cash discount.
D Kalou paid Droghba by cheque after taking a trade discount.
5 Ranjit is a credit customer of Balbir. In April the following activities took place.
Balbir sold goods on credit to Ranjit.
Ranjit advised Balbir that some of the goods were damaged.
Balbir advised Ranjit of a reduction in the amount owing.
Which documents were used to record these activities?
A debit note, credit note and receipt
B invoice, credit note and receipt
C invoice, credit note and statement of account
D invoice, debit note and credit note
6 What is an advantage to a business of maintaining books of prime entry?
A A trial balance can be extracted directly from books of prime entry.
B Similar transactions are listed together in date order for reference.
C There is no need to make double entries in the ledger.
D Trade receivables and trade payables totals are readily available.
© UCLES 2024 11_7707_12_2024_1.1 [Turn Over
