Cambridge O Level ACCOUNTING 7707/11 Paper 1 Multiple Choice May/June 2021

Paper 1 Multiple Choice May/June 2021 You must answer on the multiple choice answer sheet. 1 hour 15 minutes 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 12 pages. Any blank pages are indicated. IB21 06_7707_11/FP © UCLES 2021 [Turn over 1 Which statements about book-keeping and accounting are correct? 1 Accounting is performed periodically rather than daily. 2 Accounting relies on having accurate book-keeping records. 3 Book-keeping includes the preparation of financial statements. 4 Book-keeping involves the recording of financial transactions. A 1, 2 and 4 B 1 and 3 C 2, 3 and 4 D 2 and 4 only 2 What increases owner’s capital? A bank loan extended from five to ten years B purchase of inventory on credit C purchase of machinery by cheque D transfer of vehicle to business from private use 3 Carl, a trader, took goods from the business for his own use. These goods had cost $100, and $8 carriage had been paid for them to be delivered to the business. How would this be recorded in Carl’s accounts in the books of the business? A debit Carl’s capital account $100 B debit Carl’s capital account $108 C debit Carl’s drawings account $100 D debit Carl’s drawings account $108 4 Shula’s financial year ends on 31 March. On 1 April 2021 there was a credit balance of $100 on Yasmin’s account in Shula’s purchases ledger. What does this mean? A Shula had paid $100 to Yasmin. B Shula owed $100 to Yasmin. C Yasmin had paid $100 to Shula. D Yasmin owed $100 to Shula. 5 Hasina buys radios from Nazneen at a list price of $10 each. Hasina bought 12 radios and was offered 20% trade discount and 4% cash discount. Two radios were faulty and were returned to Nazneen. What was the total of the credit note issued by Nazneen? A $15.36 B $16.00 C $19.20 D $20.00 6 Which items would be recorded in the general journal of a bakery?