CAPE Accounting Unit 1 · 2018 · Paper 2

23 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)2 marksOutline the MAIN objective of 'general purpose financial reporting' in accordance with the IASB Framework.
2. 1(a)(ii)6 marksExplain each of the specified limitations of financial statements: - Use of accounting policies [3 marks] - Use of estimates and aggregation [3 marks]
3. 1(b)(i)4 marksDistinguish between 'accrual basis accounting' and 'cash basis accounting'.
4. 1(b)(ii)2 marksIdentify TWO reasons why an organization would opt to use 'accrual basis accounting' over 'cash basis accounting'.
5. 1(c)12 marksPrepare the journal entries to record the 2017 transactions for Stephens Ltd.
6. 1(d)(i)3 marksDescribe how the introduction of an integrated computerized accounting system will impact the company in terms of recording information.
7. 1(d)(ii)3 marksDescribe how the introduction of an integrated computerized accounting system will impact the company in terms of access to records.
8. 1(d)(iii)3 marksDescribe how the introduction of an integrated computerized accounting system will impact the company in terms of independent internal verification.
9. 2(a)6 marksDistinguish among the following types of companies: public, private, and statutory.
10. 2(b)(i)4 marksCalculate the revised profit for the year ended 31 December 2016.
11. 2(b)(ii)2 marksPrepare a Statement of Retained Earnings for the year ended 31 December 2016.
12. 2(b)(iii)19 marksPrepare the Statement of Financial Position for D & G Construction Company Ltd as at 31 December 2016, submitting all workings showing the make-up of the figures.
13. 2(b)(iv)2 marksExplain ONE reason for your accounting treatment of the goods received in January 2017 as outlined in Bullet 3.
14. 2(b)(v)2 marksBriefly state the purpose of a 'Statement of Financial Position'.
15. 3(a)7 marksIdentify how EACH of the five post-balance sheet events described should be reflected in Castries Corporation's financial statements for the year ended 31 December 2015.
16. 3(b)(i)4 marksOutline the effect of inflation on EACH of the following: - Depreciation - Profit
17. 3(b)(ii)6 marksDescribe TWO alternative methodologies to historical cost accounting that can be used during periods of inflation.
18. 3(c)(i)2 marksCalculate the Dividend payout ratio for Castries Corporation for the year 2017.
19. 3(c)(ii)4 marksCalculate the Price earnings ratio for Castries Corporation for the year 2017.
20. 3(c)(iii)3 marksCalculate the Average collection period for Castries Corporation for the year 2017.
21. 3(c)(iv)3 marksCalculate the Average payment period for Castries Corporation for the year 2017.
22. 3(c)(v)3 marksCalculate the Debt-to-equity ratio for Castries Corporation for the year 2017.
23. 3(c)(vi)3 marksCalculate the Interest coverage ratio for Castries Corporation for the year 2017.