14 questions · 14 marks · ≈ 14 min
A trader does not keep a full set of accounting records.
How can he calculate the profit for the year?
Choose your answer
opening capital - closing capital + drawings
closing capital - opening capital - drawings
closing capital - opening capital + drawings
opening capital + closing capital - drawings
A trader has not maintained a full set of accounting records.
How can she calculate the credit purchases for the year?
Choose your answer
payments to credit suppliers + closing trade payables – discount received – opening trade payables
payments to credit suppliers - closing trade payables + discount received + opening trade payables
payments to credit suppliers - closing trade payables – discount received + opening trade payables
payments to credit suppliers + closing trade payables + discount received – opening trade payables
A trader has not maintained a full set of accounting records.
How can she calculate the credit sales for the year?
Choose your answer
receipts from credit customers + closing trade receivables – discount allowed – opening trade receivables
receipts from credit customers - closing trade receivables + discount allowed + opening trade receivables
receipts from credit customers - closing trade receivables – discount allowed + opening trade receivables
receipts from credit customers + closing trade receivables + discount allowed – opening trade receivables
What are advantages of keeping a full set of accounting records?
Choose your answer
4 only
1 and 4 only
2, 3 and 4 only
1, 2, 3 and 4
Maria made a profit of $4 000 in a year, but her capital only increased by $500.
Which transactions caused this?
| capital introduced $ | drawings $ | |
|---|---|---|
| A | 1 000 | 5 500 |
| B | 1 000 | 4 500 |
| C | 4 500 | 1 000 |
| D | 5 500 | 1 000 |
Choose your answer
Jakob purchases all his goods on a credit basis. He does not keep a complete set of accounts, but he has provided the following information for the year.
| $ | |
|---|---|
| opening trade payables | 6 400 |
| closing trade payables | 8 900 |
| payments to credit suppliers | 27 000 |
| cash discounts received | 3 000 |
Which value should be used for purchases on the income statement?
Choose your answer
$26 500
$27 500
$29 500
$32 500
A trader provided the following information.
| $ | |
|---|---|
| revenue | 150 000 |
| opening inventory | 8 400 |
| closing inventory | 6 800 |
A mark-up of 20% is applied.
What were the purchases for the year?
Choose your answer
$118 400
$121 600
$123 400
$126 600
A business provided the following information for the financial year ended 31 May 2024.
| inventory at 1 June 2023 | $7 400 |
|---|---|
| inventory at 31 May 2024 | $8 200 |
| rate of inventory turnover | 4.5 times |
What was the purchases for the year?
Choose your answer
$34 300
$35 100
$35 900
$37 700
A trader who does not keep full accounting records was able to supply the following information. All of his sales are on credit terms.
| $ | |
|---|---|
| amount owed by trade receivables at 1 June 2023 | 6 500 |
| cheques received from trade receivables during the year | 31 400 |
| interest charged to trade receivables | 950 |
| amount owed by trade receivables at 31 May 2024 | 5 800 |
How much were the credit sales for the year ended 31 May 2024?
Choose your answer
$29 750
$31 150
$31 650
$33 050
Nikita started a business as a delivery driver on 1 June 2023. She purchased a vehicle for the business, using her own money, which cost $8 000. She also transferred $500 of her own money into a business bank account.
She did not keep any accounting records. On 31 May 2024, she had $2 400 in the business bank account, her vehicle was valued at $6 800 and she owed $100 for insurance. During the year, she took $2 100 out of the business bank account as drawings.
What was the profit for the year?
Choose your answer
$1 900
$2 700
$2 800
$4 000
Hamza does not maintain a full set of accounting records. He provided the following information for the year ended 31 December.
| 1 January $ | 31 December $ | |
|---|---|---|
| non-current assets | 30 000 | 50 000 |
| current assets | 8 000 | 8 500 |
| working capital | 5 000 | 4 000 |
| non-current liabilities | 6 000 | 10 000 |
During the year, Hamza took goods costing $2 000 from the business for personal use.
What was his profit for the year?
Choose your answer
$13 000
$17 000
$17 500
$23 500
Roshan’s sales for the year were $60 000. His gross profit margin was 25%. The inventory at the end of the financial year was $800 more than the inventory at the start of the financial year.
What were the purchases for the year?
Choose your answer
$44 200
$45 000
$45 800
$48 800
Diego provided the following information.
| revenue | $300 000 |
|---|---|
| gross margin | 15% |
| opening inventory | $10 000 |
| rate of inventory turnover | 6 times |
What was the value of Diego's inventory at the end of the year?
Choose your answer
$5 000
$42 500
$45 000
$75 000
Zelda provided the following information.
| mark-up | 30% |
|---|---|
| opening inventory | $38 000 |
| closing inventory | $46 000 |
| rate of inventory turnover | 4 times |
What was Zelda's revenue for the year?
Choose your answer
$117 600
$168 000
$218 400
$240 000