UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Ordinary Level PRINCIPLES OF ACCOUNTS Paper 1 Multiple Choice For Examination from 2008 SPECIMEN PAPER
Additional Materials: Multiple Choice Answer Sheet Soft clean eraser Soft pencil (type B or HB is recommended)

7110/01

1 hour

READ THESE INSTRUCTIONS FIRST Write in soft pencil. Do not use staples, paper clips, highlighters, glue or correction fluid. Write your name, Centre number and candidate number on the Answer Sheet in the spaces provided unless this has been done for you. 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 separate Answer Sheet. Read the instructions on the Answer Sheet very carefully. Each correct answer will score one mark. A mark will not be deducted for a wrong answer. Any rough working should be done in this booklet. Calculators may be used.

This document consists of 10 printed pages and 2 blank pages.
IB07 7110_01/2RP © UCLES 2006

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2 1 Which will be most suitable for a computer application? A B C D 2 maintaining highly confidential records maintaining the payroll for a large company recording credit sales for a small retailer recording stock withdrawn by partners

What is the accounting equation? A B C D assets less liabilities equals capital assets plus liabilities equals capital capital less liabilities equals assets capital plus assets equals liabilities

3

Which document is issued by a supplier when a customer returns goods? A B C D credit note debit note invoice statement

4

25 items are sold at $10 each with trade discount at 20 % and cash discount is 2 % if accounts are settled within 7 days. How much would be recorded in the sales journal? A $196 B $200 C $245 D $250

5

On 31 July, Jay’s bank statement shows a balance at bank of $2500, but the