Question 1

At the end of the year,Terraplane company has inventory in hand at a selling price of £20,600.What was the cost of inventory assuming inventory is sold at a margin of 60%?

Accepted Answer

A)  £12,875 
B)  £8,000 
C)  £8,240 
D)  £12,360 
A)  £12,875 
B)  £8,000 
C)  £8,240 
D)  £12,360 C

Question 2

Not every debit has a credit

Accepted Answer

A) True 
 B)False  False

Question 3

It is essential that every business keeps a complete record of ALL transactions

Accepted Answer

A) True 
 B)False  False

Question 4

The assets and liabilities of Angus & Co.at 31st Dec were as follows:
$$\begin{array} { l c } 
\text { Inventory } & 110,950 \
\text { Trade receivables } & 12,600 \
\text { Trade payables } & 18,000 \
\text { Accruals } & 750 \
\text { Prepayments } & 850 \
\text { Bank balance } & £ 8,000
\end{array}$$
What is the capital at 31st December

Accepted Answer

A)  £151,150 
B)  £151,250 
C)  £113,650 
D)  £113,450 
A)  £151,150 
B)  £151,250 
C)  £113,650 
D)  £113,450

Question 5

Bloom has sales of £12,000.The gross profit percentage is 25% of sales.If opening stock was £300 and closing stock £250,what were Bloom's purchases?

Accepted Answer

A)  £3,000 
B)  £2,050 
C)  £4,050 
D)  £3,050 
A)  £3,000 
B)  £2,050 
C)  £4,050 
D)  £3,050

Question 6

Robert's bank statements show he had an opening bank balance of £13,000 and a closing bank balance of £16,000.Robert knows he paid £12,000 to suppliers and that he took drawings of £3,000.Calculate what Robert received from debtors.

Accepted Answer

A)  £18,000 
B)  £8,000 
C)  £31,000 
D)  £13,000 
A)  £18,000 
B)  £8,000 
C)  £31,000 
D)  £13,000

Question 7

At the end of the year,NewBiscuit company has inventory in hand at a selling price of £10,500.What was the cost of inventory assuming inventory is marked up at 50%?

Accepted Answer

A)  £5,250 
B)  £8,000 
C)  £3,000 
D)  £7,000 
A)  £5,250 
B)  £8,000 
C)  £3,000 
D)  £7,000

Question 8

At the beginning of the financial year,trade receivables are £4,560 and trade payables are £3,780.Cash received from receivables in the year are £38,240 and cash paid to payables are £18,040.Closing receivables are £2,268 and closing payables are £4,040.
What are the sales of the business in the year?

Accepted Answer

A)  £40,508 
B)  £22,080 
C)  £35,948 
D)  £18,300 
A)  £40,508 
B)  £22,080 
C)  £35,948 
D)  £18,300

Question 9

The assets and liabilities of Bon & Co.at 31st Dec were as follows:
$$\begin{array} { l c } 
\text { Inventory } & 14,450 \
\text { Trade receivables } & 2,300 \
\text { Trade payables } & 3,000 \
\text { Accruals } & 200 \
\text { Prepayments } & 250 \
\text { Bank balance } & £ 1,250
\end{array}$$
What is the capital at 31st December?

Accepted Answer

A)  £15,050 
B)  £18,250 
C)  £3,200 
D)  £14,450 
A)  £15,050 
B)  £18,250 
C)  £3,200 
D)  £14,450

Question 10

Tom's bank statements show he had an opening bank balance of £3,000 and a closing bank balance of £7,000.Tom knows he paid £5,000 to suppliers and that he took drawings of £1,200.Calculate what Tom received from debtors.

Accepted Answer

A)  £13,200 
B)  £5,000 
C)  £9,800 
D)  £10,200 
A)  £13,200 
B)  £5,000 
C)  £9,800 
D)  £10,200

Question 11

Debits are increases to liabilities and revenues

Accepted Answer

A) True 
 B)False

Question 12

At the beginning of the financial year,trade receivables are £4,560 and trade payables are £3,780.Cash received from receivables in the year are £38,240 and cash paid to payables are £18,040.Closing receivables are £2,268 and closing payables are £4,040.
What are the purchases of the business in the year?

Accepted Answer

A)  £40,508 
B)  £22,080 
C)  £35,948 
D)  £18,300 
A)  £40,508 
B)  £22,080 
C)  £35,948 
D)  £18,300

Question 13

Incomplete records can,with some additional information,be converted into an income statement and statement of financial position

Accepted Answer

A) True 
 B)False

Question 14

The opening capital of Overdrive Ltd at 1st January was £31,000.At 31st December the capital figure was £45,000.How much profit had been earned?

Accepted Answer

A)  It is not possible to tell from the information provided 
B)  £14,000 
C)  (£14,000) 
D)  £45,000 
A)  It is not possible to tell from the information provided 
B)  £14,000 
C)  (£14,000) 
D)  £45,000

Question 15

At the end of the year,NewBiscuit company has inventory in hand at a selling price of £10,500.What was the cost of inventory assuming inventory is sold at a margin of 50%?

Accepted Answer

A)  £5,250 
B)  £8,000 
C)  £3,000 
D)  £7,000 
A)  £5,250 
B)  £8,000 
C)  £3,000 
D)  £7,000

Question 16

At the end of the year,Terraplane company has inventory in hand at a selling price of £20,600.What was the cost of inventory assuming inventory is marked up at 60%?

Accepted Answer

A)  £12,875 
B)  £8,000 
C)  £8,240 
D)  £12,360 
A)  £12,875 
B)  £8,000 
C)  £8,240 
D)  £12,360

Question 17

At the beginning of the financial year,trade receivables are £6,000 and trade payables are £4,000.Cash received from receivables in the year are £40,000 and cash paid to payables are £20,000.Closing receivables are £3,000 and closing payables are £5,000.
What are the purchases of the business in the year?

Accepted Answer

A)  £43,000 
B)  £37,000 
C)  £25,000 
D)  £19,000 
A)  £43,000 
B)  £37,000 
C)  £25,000 
D)  £19,000

Question 18

Assets = Liabilities - Capital

Accepted Answer

A) True 
 B)False

Question 19

Debits are increases to assets and expenses

Accepted Answer

A) True 
 B)False

Question 20

At the beginning of the financial year,trade receivables are £6,000 and trade payables are £4,000.Cash received from receivables in the year are £40,000 and cash paid to payables are £20,000.Closing receivables are £3,000 and closing payables are £5,000.
What are the sales of the business in the year?

Accepted Answer

A)  £43,000 
B)  £37,000 
C)  £25,000 
D)  £19,000 
A)  £43,000 
B)  £37,000 
C)  £25,000 
D)  £19,000

At the end of the year,Terraplane company has inventory in hand at a selling price of £20,600.What was the cost of inventory assuming inventory is sold at a margin of 60%?

Not every debit has a credit

It is essential that every business keeps a complete record of ALL transactions

The assets and liabilities of Angus & Co.at 31st Dec were as follows: Inventory 110,950 Trade receivables 12,600 Trade payables 18,000 Accruals 750 Prepayments 850 Bank balance £8,000 What is the capital at 31st December

Bloom has sales of £12,000.The gross profit percentage is 25% of sales.If opening stock was £300 and closing stock £250,what were Bloom's purchases?

Robert's bank statements show he had an opening bank balance of £13,000 and a closing bank balance of £16,000.Robert knows he paid £12,000 to suppliers and that he took drawings of £3,000.Calculate what Robert received from debtors.

At the end of the year,NewBiscuit company has inventory in hand at a selling price of £10,500.What was the cost of inventory assuming inventory is marked up at 50%?

The assets and liabilities of Bon & Co.at 31st Dec were as follows: Inventory 14,450 Trade receivables 2,300 Trade payables 3,000 Accruals 200 Prepayments 250 Bank balance £1,250 What is the capital at 31st December?

Tom's bank statements show he had an opening bank balance of £3,000 and a closing bank balance of £7,000.Tom knows he paid £5,000 to suppliers and that he took drawings of £1,200.Calculate what Tom received from debtors.

Debits are increases to liabilities and revenues

Incomplete records can,with some additional information,be converted into an income statement and statement of financial position

The opening capital of Overdrive Ltd at 1st January was £31,000.At 31st December the capital figure was £45,000.How much profit had been earned?

At the end of the year,NewBiscuit company has inventory in hand at a selling price of £10,500.What was the cost of inventory assuming inventory is sold at a margin of 50%?

At the end of the year,Terraplane company has inventory in hand at a selling price of £20,600.What was the cost of inventory assuming inventory is marked up at 60%?

Assets = Liabilities - Capital

Debits are increases to assets and expenses

The Statement of Financial Position Balance Sheetand What It Tells Us

The Income Statement Profit and Loss Account

The Development of Financial Reporting

Ratios and Interpretation: a Straightforward Introduction

How the Stock Market Assesses Company Performance

Cash Flow Statements: Understanding and Preparation

Advanced Interpretation of Company and Group Accounts

Current Issues in Financial Reporting

Bookkeeping to Trial Balance

Trial Balance to Final Accounts

Financing a Business

Management of Working Capital

Introduction to Management Accounting

Investment Appraisal

Budgetary Planning and Control

Absorption Costing

Marginal Costing and Decision-Making

Standard Costing and Variance Analysis

Filters

Exam 19: Incomplete Records

At the end of the year,Terraplane company has inventory in hand at a selling price of £20,600.What was the cost of inventory assuming inventory is sold at a margin of 60%?

Not every debit has a credit

It is essential that every business keeps a complete record of ALL transactions

The assets and liabilities of Angus & Co.at 31st Dec were as follows: Inventory 110,950 Trade receivables 12,600 Trade payables 18,000 Accruals 750 Prepayments 850 Bank balance £8,000 What is the capital at 31st December

Bloom has sales of £12,000.The gross profit percentage is 25% of sales.If opening stock was £300 and closing stock £250,what were Bloom's purchases?

Robert's bank statements show he had an opening bank balance of £13,000 and a closing bank balance of £16,000.Robert knows he paid £12,000 to suppliers and that he took drawings of £3,000.Calculate what Robert received from debtors.

At the end of the year,NewBiscuit company has inventory in hand at a selling price of £10,500.What was the cost of inventory assuming inventory is marked up at 50%?

The assets and liabilities of Bon & Co.at 31st Dec were as follows: Inventory 14,450 Trade receivables 2,300 Trade payables 3,000 Accruals 200 Prepayments 250 Bank balance £1,250 What is the capital at 31st December?

Tom's bank statements show he had an opening bank balance of £3,000 and a closing bank balance of £7,000.Tom knows he paid £5,000 to suppliers and that he took drawings of £1,200.Calculate what Tom received from debtors.

Debits are increases to liabilities and revenues

Incomplete records can,with some additional information,be converted into an income statement and statement of financial position

The opening capital of Overdrive Ltd at 1st January was £31,000.At 31st December the capital figure was £45,000.How much profit had been earned?

At the end of the year,NewBiscuit company has inventory in hand at a selling price of £10,500.What was the cost of inventory assuming inventory is sold at a margin of 50%?

At the end of the year,Terraplane company has inventory in hand at a selling price of £20,600.What was the cost of inventory assuming inventory is marked up at 60%?

Assets = Liabilities - Capital

Debits are increases to assets and expenses

The Statement of Financial Position Balance Sheetand What It Tells Us

The Income Statement Profit and Loss Account

The Development of Financial Reporting

Ratios and Interpretation: a Straightforward Introduction

How the Stock Market Assesses Company Performance

Cash Flow Statements: Understanding and Preparation

Advanced Interpretation of Company and Group Accounts

Current Issues in Financial Reporting

Bookkeeping to Trial Balance

Trial Balance to Final Accounts

Financing a Business

Management of Working Capital

Introduction to Management Accounting

Investment Appraisal

Budgetary Planning and Control

Absorption Costing

Marginal Costing and Decision-Making

Standard Costing and Variance Analysis

Filters