Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signature
I declare this is my own work.
A-level
ACCOUNTING
Paper 1 Financial Accounting
, 2
Section A
Answer all questions in this section.
For multiple-choice questions only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to
select as shown.
0 1 Which transaction would be recorded in the purchases journal?
[1 mark]
A Cash purchase of a non-current asset
B Cash purchase of goods for resale
C Credit purchase of a non-current asset
D Credit purchase of goods for resale
0 2 Which is the formula for gross profit margin?
[1 mark]
Cost of sales
A × 100
Gross profit
Gross profit
B × 100
Cost of sales
Gross profit
C × 100
Revenue
Revenue
D × 100
Gross profit
*02*
IB/M/Jun25/7127/1
, 3
Do not write
outside the
0 3 Revenue should be recorded when the legal title passes between the buyer and seller. box
Which accounting concept is being applied?
[1 mark]
A Accruals
B Money measurement
C Prudence
D Realisation
0 4 Which is the formula for trade receivables days?
[1 mark]
Credit sales
A × 365
Trade receivables
Total sales
B × 365
Trade receivables
Trade receivables
C × 365
Credit sales
Trade receivables
D × 365
Total sales
0 5 Which source of finance will increase the capital gearing ratio?
[1 mark]
A Bank overdraft
B Bonus issue of shares
C Mortgage
D Rights issue of shares
Turn over ►
*03*
IB/M/Jun25/7127/1
, 4
Do not write
outside the
0 6 Carriage inwards has been wrongly recorded in the income statement as box
carriage outwards.
What is the impact of this error on profit in the income statement?
[1 mark]
A Gross profit overstated
B Gross profit understated
C Profit for the year overstated
D Profit for the year understated
0 7 A business has expenses in relation to revenue of 65%. Profit for the year is £42 000.
How much are the expenses for the year?
[1 mark]
A £14 700
B £27 300
C £78 000
D £120 000
0 8 A business maintains a provision for doubtful debts at 3% of trade receivables.
At the beginning of the year trade receivables were £68 000 and at the end of the year
trade receivables were £62 000.
What entry will be made in the provision for doubtful debts account to record the
transfer to the income statement?
[1 mark]
A £180 credit
B £180 debit
C £1 860 credit
D £1 860 debit
*04*
IB/M/Jun25/7127/1
Centre number Candidate number
Surname
Forename(s)
Candidate signature
I declare this is my own work.
A-level
ACCOUNTING
Paper 1 Financial Accounting
, 2
Section A
Answer all questions in this section.
For multiple-choice questions only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to
select as shown.
0 1 Which transaction would be recorded in the purchases journal?
[1 mark]
A Cash purchase of a non-current asset
B Cash purchase of goods for resale
C Credit purchase of a non-current asset
D Credit purchase of goods for resale
0 2 Which is the formula for gross profit margin?
[1 mark]
Cost of sales
A × 100
Gross profit
Gross profit
B × 100
Cost of sales
Gross profit
C × 100
Revenue
Revenue
D × 100
Gross profit
*02*
IB/M/Jun25/7127/1
, 3
Do not write
outside the
0 3 Revenue should be recorded when the legal title passes between the buyer and seller. box
Which accounting concept is being applied?
[1 mark]
A Accruals
B Money measurement
C Prudence
D Realisation
0 4 Which is the formula for trade receivables days?
[1 mark]
Credit sales
A × 365
Trade receivables
Total sales
B × 365
Trade receivables
Trade receivables
C × 365
Credit sales
Trade receivables
D × 365
Total sales
0 5 Which source of finance will increase the capital gearing ratio?
[1 mark]
A Bank overdraft
B Bonus issue of shares
C Mortgage
D Rights issue of shares
Turn over ►
*03*
IB/M/Jun25/7127/1
, 4
Do not write
outside the
0 6 Carriage inwards has been wrongly recorded in the income statement as box
carriage outwards.
What is the impact of this error on profit in the income statement?
[1 mark]
A Gross profit overstated
B Gross profit understated
C Profit for the year overstated
D Profit for the year understated
0 7 A business has expenses in relation to revenue of 65%. Profit for the year is £42 000.
How much are the expenses for the year?
[1 mark]
A £14 700
B £27 300
C £78 000
D £120 000
0 8 A business maintains a provision for doubtful debts at 3% of trade receivables.
At the beginning of the year trade receivables were £68 000 and at the end of the year
trade receivables were £62 000.
What entry will be made in the provision for doubtful debts account to record the
transfer to the income statement?
[1 mark]
A £180 credit
B £180 debit
C £1 860 credit
D £1 860 debit
*04*
IB/M/Jun25/7127/1
