Please write clearly in block capitals.
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Surname
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I declare this is my own work.
A+level
Accounting Exam 1 – Intro to Financial
Accounting/ Complete Questions &
Answers
Time allowed: 3 hours
Materials
For this paper you must have: For Examiner’s Use
• a calculator. Section Mark
A
Instructions
• Use black ink or black ball-point pen. B
• Fill in the boxes at the top of this page. C
• Answer all questions.
TOTAL
• You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
• If you need extra space for your answer(s), use the lined pages at the end
of this book. Write the question number against your answer(s).
• Do all rough work in this answer book. Cross through any
work you do not want to be marked.
Information
• The marks for each question are shown in brackets.
• The maximum mark for this paper is 120.
EXAM/V/ST/V /E8
, Cash-Basis Accounting - ✔✔Revenues recorded when cash is received.
Expenses are recorded when cash is paid.
Cash basis is not in accordance with GAAP
Accrual-Basis Accounting - ✔✔Transactions recorded when events ocurr
Companies recognize revenues when they perform services (Rather than receiving cash)
Expenses are recognized when incurred (Rather than when paid)
Revenue Recognition Principle - ✔✔Revenue is recognized when performance is satisfied, not when cash is received.
Expense Recognition Principle - ✔✔spend a 100k on shirts in july. sells them for 150k in august. the expense is
recognized in august.
Adjusting Entries - ✔✔Deferals: Prepaid Expenses/Unearned Revenue
Accruals: Revenues for services performed but not cash received/ Expenses incurred but not yet paid for in cash.
Adjusted Trial Balance - ✔✔Prepared after all adjusting entries.
Purpose is to prove equality of credits and debts in ledger
Relevance - ✔✔its relevant if it makes a difference in business decision.
Considered relevant if it provides predictive information.
Confirmatory Value - ✔✔confirms or corrects prior expectations.
Centre number Candidate number
Surname
Forename(s)
Candidate signatu re
I declare this is my own work.
A+level
Accounting Exam 1 – Intro to Financial
Accounting/ Complete Questions &
Answers
Time allowed: 3 hours
Materials
For this paper you must have: For Examiner’s Use
• a calculator. Section Mark
A
Instructions
• Use black ink or black ball-point pen. B
• Fill in the boxes at the top of this page. C
• Answer all questions.
TOTAL
• You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
• If you need extra space for your answer(s), use the lined pages at the end
of this book. Write the question number against your answer(s).
• Do all rough work in this answer book. Cross through any
work you do not want to be marked.
Information
• The marks for each question are shown in brackets.
• The maximum mark for this paper is 120.
EXAM/V/ST/V /E8
, Cash-Basis Accounting - ✔✔Revenues recorded when cash is received.
Expenses are recorded when cash is paid.
Cash basis is not in accordance with GAAP
Accrual-Basis Accounting - ✔✔Transactions recorded when events ocurr
Companies recognize revenues when they perform services (Rather than receiving cash)
Expenses are recognized when incurred (Rather than when paid)
Revenue Recognition Principle - ✔✔Revenue is recognized when performance is satisfied, not when cash is received.
Expense Recognition Principle - ✔✔spend a 100k on shirts in july. sells them for 150k in august. the expense is
recognized in august.
Adjusting Entries - ✔✔Deferals: Prepaid Expenses/Unearned Revenue
Accruals: Revenues for services performed but not cash received/ Expenses incurred but not yet paid for in cash.
Adjusted Trial Balance - ✔✔Prepared after all adjusting entries.
Purpose is to prove equality of credits and debts in ledger
Relevance - ✔✔its relevant if it makes a difference in business decision.
Considered relevant if it provides predictive information.
Confirmatory Value - ✔✔confirms or corrects prior expectations.
