CAPE Accounting Unit 1 · 2007 · Paper 2

12 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)(i)5 marksDistinguish between the criteria for recognizing revenues under the cash basis and under the accrual basis of accounting.
2. 1(a)(ii)5 marksDistinguish between the criteria for recognizing expenses under the cash basis and under the accrual basis of accounting.
3. 1(b)15 marksExplain EACH of the following qualitative characteristics of accounting information identified in the IASB conceptual framework: relevance, reliability, comparability, and consistency.
4. 1(c)(i)2 marksBriefly contrast the role of internal auditors and external auditors with reference to what or who determines the scope of their work.
5. 1(c)(ii)2 marksBriefly contrast the role of internal auditors and external auditors with reference to the period of time for which they are usually appointed.
6. 1(c)(iii)2 marksBriefly contrast the role of internal auditors and external auditors with reference to what or whom they are usually required to be independent of.
7. 1(c)(iv)2 marksBriefly contrast the role of internal auditors and external auditors with reference to whether they are usually responsible for the prevention and detection of fraud.
8. 1(c)(v)2 marksBriefly contrast the role of internal auditors and external auditors with reference to the standards which generally guide their work.
9. 2(a)5 marksBriefly outline TWO similarities and THREE differences between a public company and a private company.
10. 2(b)30 marksPrepare an income statement and a balance sheet for Marlene Henkle Inc (MHI) for the year ending December 31, 2006 using International Accounting Standards, based on the provided draft financial statements and…
11. 3(a)20 marksPrepare a statement of cash flows for Anguilla Company for the year ending December 31, 2006 in a form suitable for publication.
12. 3(b)15 marksWrite a report to Tom informing him of the performance of the company from an investor's perspective, addressing FOUR key aspects: liquidity, activity, solvency, and profitability.