CAPE Accounting Unit 1 · 2008 · Paper 2

13 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)10 marksIdentify FIVE groups who use financial accounting information and state ONE purpose for which EACH group uses this information.
2. 1(b)5 marksExplain why a business should have an internal control system, including FIVE reasons in your response.
3. 1(c)(i)6 marksFor EACH of the six control procedures listed, identify the weakness in internal control.
4. 1(c)(ii)6 marksFor EACH of the six control procedures listed, suggest a change in the procedure that will result in good internal control.
5. 1(c)(iii)8 marksIdentify FOUR internal control principles that have been violated by the procedures currently in place at Balandra Clothing Store.
6. 235 marksPrepare a multiple-step income statement and classified balance sheet for Carnival Company for the year ending November 30, 2007, complying with International Accounting Standards.
7. 3(a)20 marksPrepare the statement of cash flows (SCF) using the indirect method.
8. 3(b)(i)2 marksCalculate the Current ratio for Maraval Company for 2007.
9. 3(b)(ii)2 marksCalculate the Acid test ratio for Maraval Company for 2007.
10. 3(b)(iii)2 marksCalculate the Net income per cent for Maraval Company for 2007.
11. 3(b)(iv)2 marksCalculate the Return on total assets for Maraval Company for 2007.
12. 3(b)(v)2 marksCalculate the Debt to equity ratio for Maraval Company for 2007.
13. 3(c)5 marksDescribe Gordon Limited's current financial situation and give a justification for your answer.