AS & A Level · Cambridge 9706

Accounting 9706

2,779 practice questions with worked solutions, organised by topic and past-paper session. Practise any question and get your answer marked instantly.

Practise by topic

Financial accounting (AS Level)Types of business entityThe accounting systemAccounting for non-current assetsReconciliation and verificationPreparation of financial statementsAnalysis and communication of accounting informationCost and management accounting (AS Level)Costs and cost behaviourTraditional costing methodsFinancial accounting (A Level)Preparation of financial statementsRegulatory and ethical considerationsBusiness acquisition and mergerComputerised accounting systemsAnalysis and communication of accounting informationCost and management accounting (A Level)Activity based costing (ABC)Standard costingBudgeting and budgetary controlInvestment appraisal

By past paper

Feb/March 2019Feb/March 2018Feb/March 2017Feb/March 2016

Example questions

A business is held in high regard. The owner wants goodwill shown in the financial statements. An accountant recommends that this should not be done. Which accounting concept is the accountant applying?

The accounting system · Feb/March 2016

A computer that was used as a demonstration item for customers was classified as capital expenditure. By the year end, a customer had bought the computer as part of the normal trading activities of the business. Which accounting entries are required to adjust the cost of sales?

Accounting for non-current assets · Feb/March 2016

A business prepares its financial statements to 30 April each year. The ledger account balances on 1 May 2014 included insurance (debit) $800. On 31 October 2014, an insurance premium of $2100 was paid for the year ending 31 October 2015. Which amount was included as insurance expense in the income statement for the year ended 30 April 2015?

Preparation of financial statements · Feb/March 2016

Goh’s business statements of financial position reported these net assets: 30 June 2014: $152000; 30 June 2015: $184000. In the year ended 30 June 2015, Goh introduced his private motor car into the business at a value of $14000. By 30 June 2015, the net book value of this motor car was $13200. He also took $7900 cash out of the business bank account. Calculate the profit for the year ended 30 June 2015.

Reconciliation and verification · Feb/March 2016

P entered the partnership of G and H. The assets he contributed to the business were as follows: non-current assets cost $25000, valued at $38000; inventory cost $6000, valued at $4500; cash $20000. No goodwill arose when P joined the partnership. What was the balance on P’s capital account?

Types of business entity · Feb/March 2016

X and Y each have capital accounts of $50000 and divide profits equally. They intend to bring Z into the partnership. After admission, the profit-sharing ratio will become $2:2:1$. The capital account balances are also to be kept in this ratio. Goodwill has been assessed at $20000 and will not be carried in the books of account. How much cash must Z contribute to become a partner?

Types of business entity · Feb/March 2016

David and Jane have traded together for several years, sharing profits in the ratio of $2:1$. Jane now wants to retire. Her capital account stands at $15800$ and her current account has a debit balance of $3500$. Goodwill is valued at $6600$. The book values of certain tangible assets are to be increased by $3000$. What amount is payable to Jane on her retirement from the business?

Types of business entity · Feb/March 2016

Which option is not an appropriation of partnership profit?

Preparation of financial statements · Feb/March 2016

A limited company plans to issue shares at a price higher than the nominal value. Which items, other than the bank balance, will be affected by the share issue?

Preparation of financial statements · Feb/March 2016

A company sells one million ordinary shares of $1$ each at $1.30$ per share. It also issues a debenture for $500000$. By how much does the company's equity increase?

The accounting system · Feb/March 2016