CAPE Accounting Unit 1 · 2010 · 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)10 marksMake the appropriate debit (D) or credit (C) entries for each of the given transactions (ii) to (xi) on the answer sheet provided to show the effects on the accounting model components.
2. 1(b)10 marksState whether you agree or disagree with the statement "A country should develop its own accounting standards" and outline FIVE reasons to support your position.
3. 1(c)(i)6 marksFor EACH of the three situations described, outline the weakness in internal control.
4. 1(c)(ii)9 marksFor EACH of the three situations described, explain the changes required to strengthen internal control.
5. 2(a)(i)20 marksPrepare the corrected Balance Sheet in good form as at July 31, 2008.
6. 2(a)(ii)10 marksPrepare the corrected Income Statement in good form for the year ended July 31, 2008.
7. 2(b)(i)2 marksDefine the term 'Public company'.
8. 2(b)(ii)1.5 marksDefine the term 'Statutory company'.
9. 2(b)(iii)1.5 marksDefine the term 'Private company'.
10. 3(a)20 marksPrepare the Statement of Cash Flows for the year 2008 in accordance with International Accounting Standards 7 (IAS 7).
11. 3(b)10 marksCalculate TWO liquidity ratios and THREE profitability ratios for the company and comment on the performance.
12. 3(c)5 marksList FIVE limitations of financial statement ratio analysis.