9706_w23_qp_12

Cambridge International AS & A Level ACCOUNTING 9706/12 Paper 1 Multiple Choice October/November 2023 1 hour You must answer on the multiple choice answer sheet. *3524415390* 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. IB23 11_9706_12/4RP © UCLES 2023 [Turn over

Cambridge International AS & A Level ACCOUNTING 9706/12 Paper 1 Multiple Choice October/November 2023 1 hour *3524415390* 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. IB23 11_9706_12/4RP © UCLES 2023 [Turn over

2 1 Which list is a long-term source of additional funds for a limited company? A bank loan, bonus issue of shares, debenture issue B bank loan, leasing of premises, rights issue of shares C bonus issue of shares, leasing of premises, trade credit D debenture issue, rights issue of shares, trade credit 2 Which statements describe advantages of maintaining full accounting records? 1 A more complete assessment of business performance is possible. 2 Book-keeping costs are minimised. 3 Business managers can make more informed decisions. 4 Financial statements will be free from errors and inaccuracies. A 1 and 3 B 1 and 4 C 2 and 3 D 2 and 4 3 Maria recorded a cheque for $475 received from Josh, a credit customer. Josh had deducted a 5% cash discount. The cheque has now been returned as dishonoured. What is the correct entry to record the return of the cheque in Maria’s books? debit $ credit $ A bank 475 Josh 500 discount received 25 B Josh 500 bank 475 discount received 25 C bank 475 Josh 500 discount allowed 25 D Josh 500 bank 475 discount allowed 25 4 A business purchased a shop and incurred the following costs. $ purchase price of the shop 680 000 legal fees incurred in the purchase of the shop 7 200 cost of initial inventory 12 500 cost of installing air conditioning 47 300 What was the total capital expenditure? A $680 000 B $687 200 C $734 500 D $747 000 © UCLES 2023 9706/12/O/N/23

2 1 Which list is a long-term source of additional funds for a limited company? A bank loan, bonus issue of shares, debenture issue B bank loan, leasing of premises, rights issue of shares C bonus issue of shares, leasing of premises, trade credit D debenture issue, rights issue of shares, trade credit 2 Which statements describe advantages of maintaining full accounting records? 1 A more complete assessment of business performance is possible. 2 Book-keeping costs are minimised. 3 Business managers can make more informed decisions. 4 Financial statements will be free from errors and inaccuracies. A 1 and 3 B 1 and 4 C 2 and 3 D 2 and 4 3 Maria recorded a cheque for $475 received from Josh, a credit customer. Josh had deducted a 5% cash discount. The cheque has now been returned as dishonoured. What is the correct entry to record the return of the cheque in Maria’s books? debit $ credit $ A bank 475 Josh 500 discount received 25 B Josh 500 bank 475 discount received 25 C bank 475 Josh 500 discount allowed 25 D Josh 500 bank 475 discount allowed 25 4 A business purchased a shop and incurred the following costs. $ purchase price of the shop 680 000 legal fees incurred in the purchase of the shop 7 200 cost of initial inventory 12 500 cost of installing air conditioning 47 300 What was the total capital expenditure? A $680 000 B $687 200 C $734 500 D $747 000 © UCLES 2023 9706/12/O/N/23

3 5 A used motor vehicle was part exchanged for a new motor vehicle. The balance of the purchase cost of the new motor vehicle was settled by cheque. What were the entries to record the part-exchange value? account debited account credited A bank disposal B bank motor vehicles C motor vehicles bank D motor vehicles disposal 6 A non-current asset of a business cost $300 000 in 2021. It is depreciated using the reducing balance method at the rate of 40% per annum. A full year’s depreciation is provided in the year of acquisition but none in the year of sale. The financial year of the business ends on 31 December. In 2023, the item was sold for $150 000. Disposal costs of $15 000 were incurred. What was the profit on disposal? A $27 000 B $42 000 C $57 000 D $70 200 7 A business received $100 cash from a credit customer in settlement of a debt. When recording it, an error of commission was made. Which statement about the debit and credit columns of the trial balance is correct? A The total of the credit column was $100 higher than the total of the debit column. B The total of the debit column was $100 higher than the total of the credit column. C The totals of both columns were the same as if the error had not taken place. D The totals of both columns were understated by the same amount. [Turn over © UCLES 2023 9706/12/O/N/23

3 5 A used motor vehicle was part exchanged for a new motor vehicle. The balance of the purchase cost of the new motor vehicle was settled by cheque. What were the entries to record the part-exchange value? account debited account credited A bank disposal B bank motor vehicles C motor vehicles bank D motor vehicles disposal 6 A non-current asset of a business cost $300 000 in 2021. It is depreciated using the reducing balance method at the rate of 40% per annum. A full year’s depreciation is provided in the year of acquisition but none in the year of sale. The financial year of the business ends on 31 December. In 2023, the item was sold for $150 000. Disposal costs of $15 000 were incurred. What was the profit on disposal? A $27 000 B $42 000 C $57 000 D $70 200 7 A business received $100 cash from a credit customer in settlement of a debt. When recording it, an error of commission was made. Which statement about the debit and credit columns of the trial balance is correct? A The total of the credit column was $100 higher than the total of the debit column. B The total of the debit column was $100 higher than the total of the credit column. C The totals of both columns were the same as if the error had not taken place. D The totals of both columns were understated by the same amount. © UCLES 2023 9706/12/O/N/23 [Turn over