9706_w23_qp_11

Cambridge International AS & A Level ACCOUNTING 9706/11 Paper 1 Multiple Choice October/November 2023 1 hour You must answer on the multiple choice answer sheet. *7903772521* 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. IB23 11_9706_11/3RP © UCLES 2023 [Turn over

Cambridge International AS & A Level ACCOUNTING 9706/11 Paper 1 Multiple Choice October/November 2023 1 hour *7903772521* 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. IB23 11_9706_11/3RP © UCLES 2023 [Turn over

2 1 Which sources are external short-term sources of finance for a limited company? 1 bank overdraft 2 retained earnings 3 share capital 4 trade credit A 1 and 2 B 1 and 4 C 2 and 3 D 2 and 4 2 A sole trader settles an account payable in full with her own money. This transaction has not been recorded. What will be the effect when this is recorded? A asset decreased and liability decreased B asset increased and liability decreased C liability decreased and capital increased D liability increased and capital decreased 3 Sally had $1000 in the bank when she paid $1500 to buy goods for resale. The bank allowed the payment. How was this transaction recorded in Sally’s books of account? account account(s) $ $ debited credited A inventory 1500 bank 1500 B inventory 1500 bank 1000 bank overdraft 500 C purchases 1500 bank 1500 D purchases 1500 bank 1000 bank overdraft 500 4 Which items identify revenue expenditure and a capital receipt? revenue expenditure capital receipt A carriage inward on a non-current asset issue of debentures B commission received proceeds from sale of non-current asset C discounts allowed cash drawings D repair of motor vehicle receipt of loan from lender © UCLES 2023 9706/11/O/N/23

2 1 Which sources are external short-term sources of finance for a limited company? 1 bank overdraft 2 retained earnings 3 share capital 4 trade credit A 1 and 2 B 1 and 4 C 2 and 3 D 2 and 4 2 A sole trader settles an account payable in full with her own money. This transaction has not been recorded. What will be the effect when this is recorded? A asset decreased and liability decreased B asset increased and liability decreased C liability decreased and capital increased D liability increased and capital decreased 3 Sally had $1000 in the bank when she paid $1500 to buy goods for resale. The bank allowed the payment. How was this transaction recorded in Sally’s books of account? account account(s) $ $ debited credited A inventory 1500 bank 1500 B inventory 1500 bank 1000 bank overdraft 500 C purchases 1500 bank 1500 D purchases 1500 bank 1000 bank overdraft 500 4 Which items identify revenue expenditure and a capital receipt? revenue expenditure capital receipt A carriage inward on a non-current asset issue of debentures B commission received proceeds from sale of non-current asset C discounts allowed cash drawings D repair of motor vehicle receipt of loan from lender © UCLES 2023 9706/11/O/N/23

3 5 Which statement identifies why depreciation is provided on non-current assets? A so that the cost is allocated to periods that benefit from them B so that the realisation concept is applied C so that there is enough cash in the business to replace them D so that they are shown at market value 6 New equipment costing $40 000, with an estimated residual value of $6000, was acquired at the beginning of the year on 1 January. On the same date the business made the following payments in respect of the equipment. $ delivery 5000 installation 7000 8-year maintenance contract 8000 The equipment has an estimated life of 8 years. The business uses the straight-line method of depreciation. What would be the carrying amount for this item at the end of the year on 31 December? A $35 750 B $46 250 C $52 500 D $53 250 7 Which error would not be identified by preparing a trial balance? A A contra entry of $650 had been entered twice in the sales ledger control account. B A purchase invoice of $495 had been recorded as $459 in the purchases journal. C Carriage inwards of $57 in the cash book had been recorded as $75 in the carriage inwards account. D Discount allowed of $35 had been credited to the discount received account. 8 During the year a sole trader withdrew $3000 cash from the business bank account. Accounting entries made were a debit of $300 to the drawings account and a credit of $3000 to the bank account. In addition, $500 had been omitted from the discount received account in the trial balance. What was the balance on the suspense account before these errors were corrected? A $2200 debit B $2200 credit C $3200 debit D $3200 credit [Turn over © UCLES 2023 9706/11/O/N/23

3 5 Which statement identifies why depreciation is provided on non-current assets? A so that the cost is allocated to periods that benefit from them B so that the realisation concept is applied C so that there is enough cash in the business to replace them D so that they are shown at market value 6 New equipment costing $40 000, with an estimated residual value of $6000, was acquired at the beginning of the year on 1 January. On the same date the business made the following payments in respect of the equipment. $ delivery 5000 installation 7000 8-year maintenance contract 8000 The equipment has an estimated life of 8 years. The business uses the straight-line method of depreciation. What would be the carrying amount for this item at the end of the year on 31 December? A $35 750 B $46 250 C $52 500 D $53 250 7 Which error would not be identified by preparing a trial balance? A A contra entry of $650 had been entered twice in the sales ledger control account. B A purchase invoice of $495 had been recorded as $459 in the purchases journal. C Carriage inwards of $57 in the cash book had been recorded as $75 in the carriage inwards account. D Discount allowed of $35 had been credited to the discount received account. 8 During the year a sole trader withdrew $3000 cash from the business bank account. Accounting entries made were a debit of $300 to the drawings account and a credit of $3000 to the bank account. In addition, $500 had been omitted from the discount received account in the trial balance. What was the balance on the suspense account before these errors were corrected? A $2200 debit B $2200 credit C $3200 debit D $3200 credit © UCLES 2023 9706/11/O/N/23 [Turn over