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Cambridge International AS & A Level ACCOUNTING 9706/12 Paper 1 Multiple Choice February/March 2025 1 hour You must answer on the multiple choice answer sheet. *4280102598* You will need: Multiple choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended) INSTRUCTIONS  There are thirty questions on this paper. Answer all questions.  For each question there are four possible answers A , B , C and D . Choose the one you consider correct and record your choice in soft pencil on the multiple choice answer sheet.  Follow the instructions on the multiple choice answer sheet.  Write in soft pencil.  Write your name, centre number and candidate number on the multiple choice answer sheet in the spaces provided unless this has been done for you.  Do not use correction fluid.  Do not write on any bar codes.  You may use a calculator. INFORMATION  The total mark for this paper is 30.  Each correct answer will score one mark.  Any rough working should be done on this question paper. This document has 12 pages. Any blank pages are indicated. 03_9706_12_2025_1.15 a © UCLES 2025 [Turn over

Cambridge International AS & A Level ACCOUNTING 9706/12 Paper 1 Multiple Choice February/March 2025 1 hour *4280102598* You must answer on the multiple choice answer sheet. You will need: Multiple choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended) INSTRUCTIONS  There are thirty questions on this paper. Answer all questions.  For each question there are four possible answers A , B , C and D . Choose the one you consider correct and record your choice in soft pencil on the multiple choice answer sheet.  Follow the instructions on the multiple choice answer sheet.  Write in soft pencil.  Write your name, centre number and candidate number on the multiple choice answer sheet in the spaces provided unless this has been done for you.  Do not use correction fluid.  Do not write on any bar codes.  You may use a calculator. INFORMATION  The total mark for this paper is 30.  Each correct answer will score one mark.  Any rough working should be done on this question paper. This document has 12 pages. Any blank pages are indicated. 03_9706_12_2025_1.15 a © UCLES 2025 [Turn over

2 1 Which statement explains the realisation concept? A A business recognises sales revenue when it delivers the goods to a credit customer. B A business recognises sales revenue when it receives an order from a credit customer. C A business recognises sales revenue when it receives cash from a credit customer. D A business recognises sales revenue when the customer sells the goods onwards. 2 On the first day of a financial period, before trading started, a business owner introduced her personal items to the business , consisting of goods costing $5000. Which entries should have been made to record this? account debited account credited A drawings purchases B inventory capital C inventory drawings D purchases capital 3 Why might a business adopt a computerised accounting system? 1 to ensure that the accounting records are free from error 2 to ensure that the accounting records are free from fraud 3 to ensure that the accounting records are arithmetically accurate A 1 and 2 B 1 and 3 C 2 and 3 D 3 only 4 A company’s profit for the year is $20 000. Capital income of $5000 has been treated as revenue income. Capital expenditure of $4000 has been treated as revenue expenditure. What is the correct profit for the year? A $11 000 B $19 000 C $21 000 D $29 000 © UCLES 2025 03_9706_12_2025_1.15 a

2 1 Which statement explains the realisation concept? A A business recognises sales revenue when it delivers the goods to a credit customer. B A business recognises sales revenue when it receives an order from a credit customer. C A business recognises sales revenue when it receives cash from a credit customer. D A business recognises sales revenue when the customer sells the goods onwards. 2 On the first day of a financial period, before trading started, a business owner introduced her personal items to the business , consisting of goods costing $5000. Which entries should have been made to record this? account debited account credited A drawings purchases B inventory capital C inventory drawings D purchases capital 3 Why might a business adopt a computerised accounting system? 1 to ensure that the accounting records are free from error 2 to ensure that the accounting records are free from fraud 3 to ensure that the accounting records are arithmetically accurate A 1 and 2 B 1 and 3 C 2 and 3 D 3 only 4 A company’s profit for the year is $20 000. Capital income of $5000 has been treated as revenue income. Capital expenditure of $4000 has been treated as revenue expenditure. What is the correct profit for the year? A $11 000 B $19 000 C $21 000 D $29 000 © UCLES 2025 03_9706_12_2025_1.15 a

3 5 The following costs for a business relate to a newly purchased machine. 1 alterations to the factory building to install the machine 2 payment of insurance for the new machine 3 the final purchase price of the machine agreed with the supplier 4 the price of the machine before the discount from the supplier Which costs would be treated as capital expenditure? A 1, 2 and 3 B 1 and 3 only C 2 and 3 only D 2 and 4 6 Leandro has owned a delivery van for some years and has depreciated it each year. How should he record the provision for depreciation? in the statement of in the statement of in the general journal financial position profit or loss A accumulated depreciation accumulated depreciation charge for the year B accumulated depreciation charge for the year accumulated depreciation C charge for the year accumulated depreciation charge for the year D charge for the year charge for the year accumulated depreciation 7 A business depreciates its motor vehicles at 20% per annum using the straight-line method. Depreciation is charged on a month-by-month basis. On 30 June in the current financial year, a new van was purchased at a cost of $20 000. An old van which cost $18 000, bought at the beginning of the previous year on 1 January, was part exchanged for $14 000. The balance was paid by cheque. What is the total reduction in profit for the current financial year ended 31 December as a result of this? A $2400 B $3400 C $3800 D $5200 8 Which error will not affect the trial balance? A posting of $3000 purchases to the debit of the motor vehicle account B posting of $3000 purchases to the credit of the motor vehicle account C posting of $3000 road tax refund to the debit of the motor vehicle account D posting of $3000 sales to the debit of the motor vehicle account © UCLES 2025 03_9706_12_2025_1.15 a [Turn o ver

3 5 The following costs for a business relate to a newly purchased machine. 1 alterations to the factory building to install the machine 2 payment of insurance for the new machine 3 the final purchase price of the machine agreed with the supplier 4 the price of the machine before the discount from the supplier Which costs would be treated as capital expenditure? A 1, 2 and 3 B 1 and 3 only C 2 and 3 only D 2 and 4 6 Leandro has owned a delivery van for some years and has depreciated it each year. How should he record the provision for depreciation? in the statement of in the statement of in the general journal financial position profit or loss A accumulated depreciation accumulated depreciation charge for the year B accumulated depreciation charge for the year accumulated depreciation C charge for the year accumulated depreciation charge for the year D charge for the year charge for the year accumulated depreciation 7 A business depreciates its motor vehicles at 20% per annum using the straight-line method. Depreciation is charged on a month-by-month basis. On 30 June in the current financial year, a new van was purchased at a cost of $20 000. An old van which cost $18 000, bought at the beginning of the previous year on 1 January, was part exchanged for $14 000. The balance was paid by cheque. What is the total reduction in profit for the current financial year ended 31 December as a result of this? A $2400 B $3400 C $3800 D $5200 8 Which error will not affect the trial balance? A posting of $3000 purchases to the debit of the motor vehicle account B posting of $3000 purchases to the credit of the motor vehicle account C posting of $3000 road tax refund to the debit of the motor vehicle account D posting of $3000 sales to the debit of the motor vehicle account © UCLES 2025 03_9706_12_2025_1.15 a [Turn o ver