Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signatu re
I declare this is my own work.
A+level
Financial Accounting Exam 1 – Complete
Questions with Verified 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
, accumulated depreciation - ✔✔the total amount of depreciation that the company has expensed thus far in the asset's
life
current liabilities - ✔✔obligations that the company is to pay within the next year or operating cycle, whichever is longer
(accounts payable, salaries and wages payable, salaries and wages payable, notes payable, interest payable, and income
taxes payable)
long term liabilities - ✔✔obligations that a company expects to pay after one year (bonds payable, mortgages payable,
long-term notes payable, lease liabilities, pension liabilities)
Earnings Per Share - ✔✔measures the net income earned on each share of common stock (net income-preferred
dividends)/avg # of common shares outstanding during the year
statement of stockholders equity - ✔✔presents the causes of changes to stockholders' equity during the period,
including those that caused retained earnings to change
liquidity - ✔✔ability to pay obligations expected to become due within the next year or operating cycle
working capital - ✔✔current assets-current liabilities
current ratio - ✔✔current assets/current liabilities
(more dependable than working capital)
solvency - ✔✔ability to pay interest as it comes due and repay the balance of a debt due at its maturity
solvency rations - ✔✔measure the ability of the company to survive over a long period of time
debt to assets ratio - ✔✔(measure of solvency) total liabilities/total assets in percentage
free cash flow - ✔✔net cash provided by operating activities-capital expenditures-cash dividends
enhancing qualities - ✔✔comparability, consistency, verifiability, timeliness, understandability
Centre number Candidate number
Surname
Forename(s)
Candidate signatu re
I declare this is my own work.
A+level
Financial Accounting Exam 1 – Complete
Questions with Verified 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
, accumulated depreciation - ✔✔the total amount of depreciation that the company has expensed thus far in the asset's
life
current liabilities - ✔✔obligations that the company is to pay within the next year or operating cycle, whichever is longer
(accounts payable, salaries and wages payable, salaries and wages payable, notes payable, interest payable, and income
taxes payable)
long term liabilities - ✔✔obligations that a company expects to pay after one year (bonds payable, mortgages payable,
long-term notes payable, lease liabilities, pension liabilities)
Earnings Per Share - ✔✔measures the net income earned on each share of common stock (net income-preferred
dividends)/avg # of common shares outstanding during the year
statement of stockholders equity - ✔✔presents the causes of changes to stockholders' equity during the period,
including those that caused retained earnings to change
liquidity - ✔✔ability to pay obligations expected to become due within the next year or operating cycle
working capital - ✔✔current assets-current liabilities
current ratio - ✔✔current assets/current liabilities
(more dependable than working capital)
solvency - ✔✔ability to pay interest as it comes due and repay the balance of a debt due at its maturity
solvency rations - ✔✔measure the ability of the company to survive over a long period of time
debt to assets ratio - ✔✔(measure of solvency) total liabilities/total assets in percentage
free cash flow - ✔✔net cash provided by operating activities-capital expenditures-cash dividends
enhancing qualities - ✔✔comparability, consistency, verifiability, timeliness, understandability
