ZIMSEC O-Level Principles of Accounts Paper 1 June 2024 Question Paper

ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Ordinary Level

**PRINCIPLES OF ACCOUNTING**

**PAPER 1 Multiple Choice** 1 hour 30 minutes JUNE 2024 SESSION

Additional materials: Multiple Choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended) Calculator (Optional)

INSTRUCTIONS TO CANDIDATES

Answer all questions. For each question, there are four possible answers, A, B, C and D. Choose the correct answer. Record your choice in soft pencil on the separate answer sheet provided.

Read very carefully the instructions on the answer sheet.

INFORMATION FOR CANDIDATES

There are forty questions in this paper. Each correct answer will score one mark. Any rough working should be done on this question paper.

Question 1

Which of the following are assets only?

A Cash, inventory and payables

B Cash, payables and machinery

C Machinery, receivables and inventory

D Premises, bank overdraft and plant

Question 2

What comes after the ledger in the accounting cycle?

A Source documents

B Subsidiary books

C Transactions

D Trial balance

Question 3

Which of the following items is a set of input devices?

A Keyboard and mouse

B Keyboard and speakers

C Mouse and visual display unit

D Speakers and monitor

Question 4

Which document is used to correct an undercharge?

A Bank statement

B Credit note

C Debit note

D Statement of account

Question 5

Which of the following transactions is recorded in the purchases journal?

A Purchased goods by cheque

B Purchased goods on credit from Tendai

C Purchased machinery by cheque

D Purchased machinery on credit from A. T. Motors

Question 6

Rent account is found in the

A general ledger.

B private ledger.

C trade payables ledger.

D trade receivables ledger.

Question 7

Which error is not revealed by a trial balance?

A Compensating error

B Completing double entry with different figures

C Error in extraction of balances

D Single entry

Question 8

A club excluded subscriptions prepaid at the end of financial year from the income and expenditure account. This is in accordance with

A going concern concept.

B historical concept.

C matching concept.

D prudence concept.

Question 9

Which of the following is classified as a current asset in the statement of financial position?

A bank loan

B bank overdraft

C trade payables

D trade receivables

Question 10

What is debited in an asset disposal account?

A Cost price of asset

B Loss on disposal

C Proceeds from disposal

D Provision for depreciation

Question 11

Which of the following is revenue expenditure?

A Cost of maintaining a non-current asset

B Cost of painting a non-current asset

C Cost of transporting a non-current asset

D Legal costs of acquiring a non-current asset

Question 12

Which of the following shows correct source of information for control account items?

Item

A Bad debts

B Returns inwards

C Returns outwards

D Set off

Source

cash book

Purchases returns journal

sales returns journal

general journal

Question 13

When updating a cash book which item is recorded on the debit side?

A Bank charges

B Dividends received

C Interest on bank overdraft

D Stop order

Question 14

Mark up is obtained by

A \(\frac{\text { Gross Profit }}{\text { Cost of good sold }} \times \frac{100}{1}\)

B \(\frac{\text { Gross Profit }}{\text { Turnover }} \times \frac{100}{1}\)

C \(\frac{\text { Net Profit }}{\text { Cost of goods sold }} \times \frac{100}{1}\)

D \(\frac{\text { Net Profit }}{\text { Turnover }} \times \frac{100}{1}\)

Question 15

Closing capital can be calculated as

A opening capital - net profit - drawings.

B opening capital + net profit - drawings.

C opening capital - net profit + drawings.

D opening capital + net profit + drawings.

Question 16

Which of the following items is debited to a receipts and payments account?

A Payments to suppliers

B Proceeds from sale of sports equipment

C Purchase of refreshments

D Purchase of sports equipment

Question 17

Current ratio is

A \(\frac{\text{total current assets}}{\text{current liabilities}}\).

B \(\frac{\text{total current assets - closing inventory}}{\text{current liabilities}}\).

C \(\frac{\text{total current assets - opening inventory}}{\text{current liabilities}}\).

D \(\frac{\text{total current assets}}{\text{total liabilities}}\).

Question 18

Which of the following ratios is calculated using cost of sales?

A Current ratio

B Margin

C Mark up

D Quick ratio

Question 19

In a manufacturing business, which is a factory overhead?

A Machine lubricants

B Manufacturing wages

C Patent fees

D Royalties

Question 20

Cost of raw materials consumed is

A opening inventory of raw materials - purchase of raw materials - carriage on purchases - closing inventory of raw material.

B opening inventory of raw materials - purchase of raw materials + carriage on purchases - closing inventory of raw material.

C opening inventory of raw materials + purchase of raw materials - carriage on purchases - closing inventory of raw material.

D opening inventory of raw materials + purchase of raw materials + carriage on purchases - closing inventory of raw material.

Question 21

Which of the following items are credited to a partner's current account?

A Interest on capital and interest on drawings

B Interest on capital and share of profits

C Interest on drawings and share of profits

D Interest on drawings and drawings

Question 22

What is used by partnerships to limit cash or goods taken for personal use by partners?

A Interest on capital

B Interest on current accounts

C Interest on drawings

D Partner's salary

Question 23

Shareholders' funds is a result of adding

A authorised capital and issued capital.

B issued capital and debentures.

C issued capital and reserves.

D reserves and debentures.

Question 24

Which of the following business ethics is applied when employees follow rules and regulations in the code of ethics?

A Compliance

B Confidentiality

C Integrity

D Objectivity

Question 25

In the statement of changes in equity, a payment of dividends by a company will

A increase retained profits.

B increase share capital.

C reduce retained profits.

D reduce share capital.

Question 26

A debenture holder earns

A dividends.

B interest.

C profit.

D salary.

Question 27

The following account appeared in the general ledger.

Motor vehicle disposals account

| 2020 | \(\$\) | 2020 | \(\$\) | | :--- | :---: | :--- | :---: | | Dec 31 Motor vehicle | 30000 | Dec 31 Cash | 12800 | | | | Provision for depreciation | 16500 | | | | Income statement | \(\underline{700}\) | | | \(\underline{30000}\) | | \(\underline{30000}\) |

The entry "Income statement \(\$700\)" on 31 December 2020 was

A loss on disposal credited to the income statement.

B loss on disposal debited to the income statement.

C profit on disposal credited to the income statement.