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CSEC POA Past Paper Questions

Total questions: 35

Worksheet time: 26mins

Name
Class
Date
1.

Which of the following can be found on both the income statement and on the balance sheet?

a)

Drawings

b)

Net profit

c)

Bank overdraft

d)

Account Receivable

2.

Which of the following is NOT a capital expenditure?

a)

Replacement costs

b)

Purchase costs

c)

Delivery costs

d)

Repair cost

3.

A motor vehicle which costs $150 000 is to be depreciated by 10% per annum. It is expected to remain in the business for 4 years.

Using the Reducing Balance Method, what is the provision for depreciation charged in year 3?

a)

$10,930

b)

$12,150

c)

$13,500

d)

$15,000

4.

Which of the following are items found in the cash book but not on the bank statement?

a)

Direct debit

b)

Standing order

c)

Credit transfer

d)

Unpresented cheques

5.

Which of the following groups of accounts are found in the Purchases Ledger control A/C?

a)

Total purchases, refunds, return inwards, discount allowed

b)

Cash purchases, cash received, return inwards, discount received

c)

Cheque purchases, cash received, return outwards, discount allowed

d)

Credit purchases, cash payments, return outwards, discount received

6.

Which of the following is NOT entered in the partnership appropriation account?

a)

Drawings

b)

Interest on capital

c)

Partnership salaries

d)

Interest on drawings

7.

Using the permanency method, the descending order in which current assets should be shown in a balance sheet is

a)

cash, bank, accounts receivable, inventory

b)

inventory, accounts receivable, bank, cash

c)

inventory, bank, cash, accounts receivable

d)

accounts receivable, inventory, bank, cash

8.

Which of the following ratios determines the profitability of the business?

a)

Capital ratio

b)

Current ratio

c)

inventory turnover

d)

Return on investment

9.

Which of the following types of investment carries a fixed rate of interest whether profit is made or not?

a)

Debentures

b)

Preference shares

c)

Cumulative preference

d)

Participating preference

10.

Which of the following are ALL components of the Income Statement?

a)

Net sales, Cost of sales, Net profit

b)

Non-current liabilities, Capital, Expenses

c)

Net current assets, Gross profit, Cost of sales

d)

Gross profit, Current assets, Current liabilities

11.
How would you classify land and buildings in a Balance Sheet?
a)
Fixed assets
b)
Current Assets
c)
Current Liabilities
d)
Long term Liabilities
12.

Which group of assets below is recorded in the 'Order of liquidity?

a)

Cash, Plant and Machinery, stock

b)

Cash, Stock, Buildings and Lands

c)

Vehicles, Cash, Buildings and Lands

d)

Furniture, vehicles, office supplies

13.

The value of TOTAL fixed assets is

a)

$12,000

b)

$14,600

c)

$15,350

d)

$19,650

14.

The summarised position of Foster and Scott at 6 March 2015 is shown in the picture: What was the capital of Foster and Scott Limited at 6 March 2015?

a)

$40,000

b)

$90,000

c)

$150,000

d)

$190,000

15.

From the information above, Mr. Jones' capital amount is

a)

$405

b)

$450

c)

$850

d)

$975

16.
A firm sold items at $80 each. Of these, 9 items were returned. Which of the follosing will the firm issue in respect of the items returned?
a)
Debit note for $720
b)
Credit note for $720
c)
Receipt for $720
d)
Invoice for $720
17.

From the following information above, what is the correct closing total for the Sales Account?

a)

$47,000

b)

$49,000

c)

$55,000

d)

$59,000

18.
Which of the following would NOT appear in a Cash Book?
a)
Payment for goods $100
b)
Goods sold on credit $100
c)
Goods sold for cheque $100
d)
Goods bought for cash $100
19.
On 12 January 2015, a merchant purchased goods amounting to $120 on the following terms: 5% cash discount if paid within 30 days. He settled his debt on 28 February 2015. How much did he pay?
a)
$112
b)
$114
c)
$120
d)
$126
20.
On 2 March 2015, L.Lan bought goods on credit worth $630. He received a 3% trade discount on this amount. The invoice also stated 2% 20 days, net 30 days. How much would L. Lan pay for the goods on 8 March 2015?
a)
$595.00
b)
$598.88
c)
$611.10
d)
$661.12
21.

The ABC Company deposited a cheque for $300 received from Mr. Murray. How should this transaction be recorded in ABC's books?

I. Debit the Cash Account

II. Debit the Bank Account

III. Credit Murray;s Account

a)

I and II only

b)

I and III only

c)

II and III only

d)

I, II and III

22.

When money is taken from cash and paid into a bank account, the recording is referred to as:

a)

The imprest

b)

A Contra Entry

c)

Cash takings

d)

Personal drawings

23.
An asset purchased for $1,000 is depreciated at the rate of 10% per annum using the reducing balance method. The book value of the asset at the beginning of the third year is
a)
$800
b)
$810
c)
$900
d)
$1,190
24.
A mechanic starts his business with $10,000 worth of tools. What entries should be made to record this transaction?
a)
Dr. Capital A/C; Cr. Bank A/c
b)
Dr. Bank A/c; Cr. Capital A/c
c)
Dr. Tools; Cr. Capital A/c
d)
Dr. Capital A/c; Cr Tools A/c
25.
Goods were sold on credit to John Brown. Which of the followiing is the correct double entry to record this transaction:
a)
Debit John Brown;s A/c; Credit Sales A/c
b)
Debit Sales A/c; Credir John Brown's A/c
c)
Debit John Brown's A/c; Credit Cash A/c
d)
Debit Cash A/c; Credit John Brown's A/c
26.
An increase in drawings will result in
a)
an increase in long-term liabilities
b)
a decrease in capital
c)
a decrease in current liabilities
d)
an increase in capital
27.

What is the working capital?

a)

$20,000

b)

$25,000

c)

$50,000

d)

$70,000

28.

Which of the following is LEAST likely to be a method of payment for employees:

a)

cash

b)

paypal

c)

cheque

d)

direct deposit

29.

Which of the following is NOT considered to be an outflow?

a)

Rent

b)

Sales

c)

Utilities

d)

Wages and salaries

30.

Land, machinery, fixtures and fitting and inventory, are all examples of

a)

liabilities account s

b)

personal accounts

c)

nominal accounts

d)

real accounts

31.

Q. Baine is employed by a construction company at a rate of $7 per hour. During the week of 6 April 2015, he worked his basic week of 40 hours. The income tax due on his pay is $20, and he is also liable to pay social security contributions of 5% of his gross pay. What is Q. Baine's net pay?

a)

$246

b)

$260

c)

$266

d)

$280

32.

P. Hawk has a manufacturing business. The cost of his raw materials was $1,900. Rates and rent totalled $2,000, and factory wages amounted to $2,500. The number of units produced was 640. What was the cost of ONE unit?

a)

$4

b)

$6

c)

$10

d)

$13

33.

Which of the following items can be used to adjust the Cash Book balance before preparing a Bank Reconciliation Statement?

a)

Direct transfers and bank lodgements

b)

Direct transfers and dishonoured cheques

c)

Bank lodgements and unpresented cheques

d)

Dishonoured cheques and unpresented cheques

34.

How does an increase in bad debt affect a sole trader's financial statements?

a)

Decrease the gross profit

b)

Increase the gross profit

c)

Decrease the net profit

d)

lncrease the net profit

35.

The amount to be shown as a set-off in the Debtors Ledger Control Account is

a)

$200

b)

$700

c)

$900

d)

$1,100