A Level Accounting (9706) Past Papers – Cambridge International

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Prepare for Cambridge International A Level Accounting (9706) with interactive past paper practice. Covering financial accounting, costing, management accounting, and analysis of financial statements, these quizzes provide instant feedback with official marking schemes. Ideal for AS and A Level students aiming to strengthen exam techniques and achieve top grades.

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A Levels | Accounting (9706)
Question Count : 30

Duration :1 hours

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A Levels | Accounting (9706)

30 Different Questions Every time

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Which item should not be recorded in a statement of changes in equity?

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A sole trader had trade receivables of $21 650 at the start of the year.
During the year there were irrecoverable debts of $450 written off.
Cash received from customers was $42 670.
At the year end, the statement of financial position showed trade receivables of $25 745 after
deducting a provision for doubtful debts of 5%.
What were the sales for the year?

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A business receives rent from letting part of its premises.
On 1 January 2022, there was a balance brought forward of $1000 in the rent receivable account
in respect of one month’s rent received in advance.
During the year ended 31 December 2022, the business received further amounts totalling
$13 000 to cover the period from 1 February 2022 to 31 January 2023.
A rent increase of 10% was introduced from 1 April 2022.
The statement of profit or loss for the year ended 31 December 2022 incorrectly included an
amount of $13 000 for rent receivable.
What was the effect of this error on the profit for the year?

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A business uses absorption costing and applies a mark-up of 50% when setting selling prices.
Each unit of product X has a direct cost of $60 and a selling price of $150 and requires two hours
of machine time.
What is the overhead absorption rate per machine hour?

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At 31 December 2021 a business had a non-current asset with a net book value of $18000. It
had been purchased during the year ended 31 December 2020.
Depreciation is charged at a rate of 25% per annum using the reducing balance method. A full
year’s depreciation is charged in the year of purchase.
What was the original cost of the non-current asset?

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At 31 December 2021, a business had calculated the draft profit for the year of $57 500.
It was then discovered that the following adjustments were necessary.

  1. Inventory valued at $2400 was damaged and now had a resale value of $1660.
  2. Rent receivable included $400 prepaid for 2022.
  3. The provision for doubtful debts needed to be increased by $890.
    What is the correct profit for the year?

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An employee is paid at the hourly rate of $20 basic pay for working 8 hours a day.
Overtime is paid at the hourly rate of basic pay plus 25% (time and a quarter).
A productivity bonus is also paid at the hourly rate of basic pay plus 50% (time and a half) for
every unit produced more than 30 units per day.
On Wednesday, the employee worked 10 hours and produced 32 units.
How much was the employee’s gross pay for Wednesday?

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A business depreciates its machinery at 10% per annum using the straight-line method on a
month-by-month basis. The business’s financial year end is 30 June.
Machinery which had cost $6600 on 1 April 2020 was sold on 30 November 2021. The profit on
sale was $350.
What were the sale proceeds?

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At 31 December 2021, the draft statement of financial position for a business showed total assets
of $1 000 000.
The following was then discovered.

  1. An increase in the provision for doubtful debts, $5000, had not been recorded.
  2. Closing inventory had been overvalued by $20 000.
  3. Depreciation, $10 000, had not been recorded.

What was the corrected total assets value?

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What is recorded in both the appropriation account and the current accounts of a partnership?

  1. drawings
  2. interest on drawings
  3. interest on capital

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At the end of a financial period, the total of the individual balances in the purchases ledger was
$149 000.
The following errors were then discovered.

  1. A contra for $2500 had been omitted from a supplier account.
  2. Discounts received of $1200 had been credited to a supplier’s account as $2100.
  3. No entries had been made for a credit purchase of $5100 from a supplier.
  4. Purchases returns of $3000 had been credited to a supplier’s account.

What was the corrected total of the individual balances in the purchases ledger at the end of
the period?

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Which statements about a semi-variable cost are correct?

  1. Part of the amount always changes for any level of output.
  2. Part of the amount changes for a given level of output.
  3. The amount always changes for a given level of output.

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What are possible limitations of a budgetary control system?

  1. Budgets are based on estimates.
  2. Budgets may lead to staff demotivation.
  3. Budgets may prevent managers from being creative.

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What would cause overheads to be over-absorbed?

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On 1 January a company had 300 000 ordinary shares of $1 each and a 10% bank loan of
$100 000. On 1 July the company issued a 6% debenture of $800 000.
The profit from operations for the year ended 31 December was $120 000.
The company paid a dividend of $0.05 per ordinary share during the year.
What was the profit for the year ended 31 December?

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At the end of a financial period, the trial balance of a business did not agree and a suspense
account was opened.
The following was then discovered.

  1. A cheque for $7800 was correctly entered in the customer’s account but had been
    debited in the bank account as $7000.
  2. A credit purchase of $2500 had been omitted from the books of account.
  3. Discounts received of $9600 had been entered on the debit side of discounts
    allowed account.
  4. The sales account had been overcast by $18 200.
    After adjusting these items, the suspense account was cleared.
    What was the opening balance of the suspense account?

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