Accounting IGCSE 1.0

Businesses use financial records to prepare final accounts.

Which record is used in the preparation of the Statement of Financial Position?

What is calculated in a Trading Account?

Which is a current liability?

Which would appear in a Statement of Financial Position?

A business provides the following information.

$

sales 10 000

purchases 8 000

opening inventories 1 000

closing inventories 1 500

sales returns 200

purchases returns 300

What is the cost of sales?

Employees’ skills are not recorded in the books of account.

Which accounting principle is involved?

A business decides to use the same depreciation method every year.

Which accounting principle is the business following?

A business charges $1500 to its Profit and Loss Account for electricity. This includes $200 for an electricity bill that is outstanding at the year end.

Which accounting principle has been applied?

A retailer’s capital is $40 000. The following payments are made from the business bank account.

$5000 for extension to the retailer’s shop

$2000 for purchase of television for retailer’s private house

How much is the retailer’s capital now?

A supplier overcharges a customer for goods supplied on credit.

Which document will the supplier issue to the customer?