A-level ACCOUNTING Paper 1 Financial Accounting

Which of the following correctly lists items to be shown as debit entries in an income statement? 0 2 A Carriage inwards; carriage outwards; returns inwards B Carriage inwards; carriage outwards; returns outwards C Carriage inwards; returns inwards; returns outwards D Carriage outwards; returns inwards; returns outwards Which of the following is not shown on a statement of changes in equity? A Bonus issue of ordinary shares B Debenture interest paid C Dividends paid D Rights issue of ordinary shares [1 mark] [1 mark] IB/M/Jun24/7127/1 *02* 5 Do not write outside the box [1 mark] 0 3 A business owner records goods taken for their own use as drawings. Which accounting concept is being applied? A Business entity B Consistency C Money measurement D Realisation Turn over ► IB/M/Jun24/7127/1 6 Do not write outside the box IB/M/Jun24/7127/1 0 4 What is the correct formula for the capital gearing ratio? Non-current liabilities A × 100 Issued share capital + current liabilities Non-current liabilities B × 100 Issued share capital + non-current liabilities Non-current liabilities C × 100 Issued share capital + reserves + current liabilities Non-current liabilities D × 100 Issued share capital + reserves + non-current liabilities Turn over for the next question [1 mark] *03* 7 Do not write outside the box Turn over ► IB/M/Jun24/7127/1 0 5 A sales ledger control account showed the following for January 2024. Details £ Balance on 1 January Contra with purchases ledger control account 190 Credit sales 38 692 Receipts from credit customers 27 955 What was the balance brought down on the sales ledger control account on 1 February 2024? [1 mark] A £31 997 Credit B £31 997 Debit C £32 377 Credit D £32 377 Debit 8 Do not write outside the box IB/M/Jun24/7127/1 0 6 The purchase of a non-current asset has been recorded as administration expenditure. What is the effect on profit in the income statement? [1 mark] A Gross profit overstated B Gross profit understated C Profit for the year overstated D Profit for the year understated *04* 0 7 Win, Xi and Zang are in partnership. They do not have a partnership agreement. Which of the following would each partner be entitled to in addition to a third of the profits? [1 mark] A 0% interest on capital; 0% interest on loans B 0% interest on capital; 5% interest on loans C 5% interest on capital; 0% interest on loans D 5% interest on capital; 5% interest on loans 9 Do not write outside the box Turn over ► IB/M/Jun24/7127/1 0 8 Which of the following is not an advantage of a computerised accounting system? [1 mark] A Increased processing speed B Increased reliability C Reduced errors D Reduced training costs