Q: A business provides for doubtful debts at 5% of trade receivables. If trade receivables are $20,000, what is the provision for doubtful debts?

$$ 20,000 \times 0.05 = 1$$,000 $

Q: A business has trade receivables of $$8,000 and a provision for doubtful debts of 400. If an $$irrecoverable debt of $200 is written off, what is the new provision for doubtful debts at 5% of remaining receivables?

$$ (8,000 - 200) \times 0.05 = 390$$ $

Q: Which of the following is the correct formula for calculating the gross profit margin?

$$ \frac{Gross\ Profit}{Sales} \times 100 $$

Question 1

Which of the following best describes the purpose of a trial balance in accounting?

Accepted Answer

To ensure that total debits equal total credits in the ledger accounts

Question 2

A business purchased equipment for $10,000. The equipment is expected to last 5 years with no residual value. Using the straight-line method, what is the annual depreciation expense?

Accepted Answer

$$ \frac{10,000}{5} = 2$$,000 $

Question 3

Which accounting concept requires that expenses are matched with the revenues they help to generate?

Accepted Answer

Matching

Question 4

A company has the following balances: Sales $$50,000, Purchases 30$$,000, Opening Inventory $$5,000, Closing Inventory 7$$,000. What is the gross profit?

Accepted Answer

$$ 50,000 - (30,000 + 5,000 - 7,000) = 18$$,000 $

Question 5

Which of the following is NOT a book of original entry?

Accepted Answer

Ledger

Question 6

A business provides for doubtful debts at 5% of trade receivables. If trade receivables are $20,000, what is the provision for doubtful debts?

Accepted Answer

$$ 20,000 	imes 0.05 = 1$$,000 $

Question 7

Which of the following is an example of capital expenditure?

Accepted Answer

Purchase of office furniture

Question 8

A business discovers that a $500 payment for rent was incorrectly recorded as a payment for repairs. What is the correct journal entry to rectify this error?

Accepted Answer

Debit Rent $$500, Credit Repairs 500$$

Question 9

Which of the following is a current liability?

Accepted Answer

Trade payables

Question 10

A partnership has the following capital balances: Partner A $$40,000, Partner B 60$$,000. Profits are shared equally. If the profit for the year is $20,000, how much does Partner B receive?

Accepted Answer

$$ 20,000 \div 2 = 10$$,000 $

Question 11

Which of the following is NOT a characteristic of public sector organizations?

Accepted Answer

Owned by private individuals

Question 12

Which accounting concept requires that assets and liabilities are recorded at their original cost?

Accepted Answer

Historical cost

Question 13

A business has the following balances: Current assets $$15,000, Current liabilities 10$$,000. What is the current ratio?

Accepted Answer

$$ \frac{15,000}{10,000} = 1.5:1 $$

Question 14

Which document is used to request payment from a customer for goods sold?

Accepted Answer

Invoice

Question 15

Which of the following is a method of protecting accounting data when using technology?

Accepted Answer

Encryption

Question 16

A sole trader prepares a statement of financial position. Which of the following is NOT included as a non-current asset?

Accepted Answer

Inventory

Question 17

Which of the following is an example of professional ethics in accounting?

Accepted Answer

Maintaining confidentiality of client information

Question 18

A business has trade receivables of $$8,000 and a provision for doubtful debts of 400. If an $$irrecoverable debt of $200 is written off, what is the new provision for doubtful debts at 5% of remaining receivables?

Accepted Answer

$$ (8,000 - 200) 	imes 0.05 = 390$$ $

Question 19

Which of the following is the correct formula for calculating the gross profit margin?

Accepted Answer

$$ \frac{Gross\ Profit}{Sales} 	imes 100 $$

Question 20

Which of the following is NOT a responsibility of an accountant when preparing financial statements?

Accepted Answer

Maximizing the reported profit by any means

Edexcel International GCSE Accounting (9-1) Specification Study Notes

Guida di studio - Domande di pratica

Study guide - Flashcard