CAPE Accounting Unit 1 · 2009 · 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)5 marksList the FIVE characteristics and match EACH with the appropriate definition by selecting the correct letter from the table.
2. 1(b)2 marksDefine the term 'due process' as it relates to the development of accounting standards.
3. 1(c)(i)2 marksWhat is the meaning of the term 'internal control'?
4. 1(c)(ii)3 marksWhat is the role of internal control in a business organization?
5. 1(c)(iii)3 marksWhy are internal controls important for inventory (stock)?
6. 1(c)(iv)2 marksIdentify TWO internal controls that should be put in place for accounts receivable (debtors).
7. 1(d)(i)16 marksPrepare journal entries with narratives to correct the four errors described.
8. 1(d)(ii)2 marksPrepare a statement showing the necessary adjustments to the profit.
9. 2(a)11 marksPrepare an Income Statement for the year ending December 31, 2008 in compliance with International Accounting Standards.
10. 2(b)24 marksPrepare a classified Balance Sheet as at December 31, 2008 in compliance with International Accounting Standards.
11. 3(a)23 marksPrepare a Statement of Cash Flows for 2008 showing clearly cash flows from operating activities, investing activities and financing activities.
12. 3(b)(i)4 marksState TWO uses and TWO limitations of financial ratios.
13. 3(b)(ii)8 marksDiscuss the performance of Cheryl's Salon over 2007 and 2008 in terms of liquidity and profitability using the industry averages as benchmarks.