CAPE Accounting Unit 1 · 2013 · Paper 2

15 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)6 marksOutline the structure of the 'Conceptual Framework of Accounting' (a diagram may be used).
2. 1(b)3 marksState THREE reasons why the International Accounting Standards Board (IASB) developed the Conceptual Framework of Accounting.
3. 1(c)6 marksOutline the meaning of any THREE of the following qualitative characteristics of accounting information: (i) Relevance, (ii) Reliability, (iii) Comparability, (iv) Consistency, (v) Understandability.
4. 1(d)4 marksState any FOUR steps leading to the establishment and issuance of an Accounting Standard.
5. 1(e)4 marksState any FOUR ways to achieve internal controls in an organisation to improve the accuracy and reliability of accounting records.
6. 1(f)12 marksPrepare the journal entries, including narratives and clearly showing calculations, for the following transactions of D&G Limited: - 15 March 2012: Purchased welding plant from Welders International for…
7. 2(a)(i)14 marksPrepare a Multiple-Step Statement of Comprehensive Income (Income Statement) vertically in accordance with IAS 1 (Section 3 of IFRS for SMEs).
8. 2(a)(ii)4 marksPrepare a Statement of Retained Earnings for K M Mart Limited for the year ended 31 December 2012.
9. 2(b)17 marksShow how the partnership income of $741 000 is divided among the three partners, indicating clearly the amounts for interest, salaries, and the residual profit distribution.
10. 3(a)20 marksPrepare a Statement of Cash Flows for the year ended 31 December 2011 using the indirect method in accordance with IAS 7 (IFRS for SMEs Section 7), showing cash flows from operating, investing, and financing activities.
11. 3(b)(i)3 marksCalculate the Current ratio for the year ended 31 December 2011 and interpret your answer.
12. 3(b)(ii)3 marksCalculate the Quick ratio for the year ended 31 December 2011 and interpret your answer.
13. 3(b)(iii)3 marksCalculate the ratio Debt / Total Assets for the year ended 31 December 2011 and interpret your answer.
14. 3(b)(iv)3 marksCalculate the ratio Debt / Equity for the year ended 31 December 2011 and interpret your answer.
15. 3(b)(v)3 marksCalculate the ratio Net Income / Total Assets for the year ended 31 December 2011 and interpret your answer.