Which of the following is the correct double entry to record the purchase of office equipment on credit from Beta Suppliers?

A credit note received from a supplier for goods returned should be recorded in which book of prime entry?

A business pays a supplier $980 in full settlement of an invoice of $1,000. The $20 difference is best described as:

A business operates an imprest petty cash system with a float of $200. During the month, total expenditure recorded was $156. The reimbursement required to restore the imprest is:

The opening balance on the sales ledger control account was $24,500. During the month: credit sales $86,000; receipts from credit customers $79,400; discounts allowed $1,100. The closing balance on the sales ledger control account is:

The bank statement shows a credit balance of $4,200. Unpresented cheques total $850 and uncredited deposits are $1,300. The balance per the cash book should be:

Which of the following accounts would normally have a credit balance in the trial balance?

The bookkeeper recorded the purchase of a new motor vehicle as: Dr Repairs $500; Cr Cash $500. This is an example of:

The trial balance failed to agree because the total of the discount allowed column in the cash book ($340) was not posted to the ledger. The correcting journal is:

At the year-end, rent of $1,200 has been paid in advance and electricity of $450 is owing. The combined effect of these adjustments on profit for the year is:

A motor vehicle was purchased on 1 January 2024 for $24,000. It has an estimated residual value of $4,000 and a useful life of 5 years. Using the straight-line method, the carrying amount at 31 December 2025 is:

A business has trade receivables of $48,000 at the year-end and wishes to maintain an allowance for doubtful debts of 4%. The current allowance is $1,500. The charge (credit) to the income statement is:

According to IAS 2 Inventories, inventory should be valued at:

A sole trader has the following information for the year: sales $120,000; opening inventory $8,000; purchases $72,000; closing inventory $10,000. The gross profit for the year is:

In a partnership appropriation account, interest on capital is best described as:

Which of the following is best classified as a fixed cost?

Prime cost is best defined as:

The following inventory movements occurred during May for component X: 1 May opening inventory 100 units at $5.00 each; 8 May purchased 200 units at $6.00 each; 15 May issued 250 units to production. Using the FIFO method, the cost of the 15 May issue is:

The Economic Order Quantity (EOQ) is the order size that minimises:

The following data relate to component Y: maximum usage 80 units per day; minimum usage 40 units per day; maximum lead time 12 days; minimum lead time 6 days. The reorder level is:

An employee is paid $0.80 per unit produced, with a guaranteed minimum wage of $200 per week. In a week in which she produced 220 units, her gross wage is:

Budgeted production overheads are $80,000 and budgeted direct labour hours are 16,000. Actual production overheads incurred were $82,000 and actual direct labour hours worked were 15,500. Using a direct labour hour overhead absorption rate, the overhead absorbed is:

The most appropriate basis for apportioning factory canteen costs between cost centres is:

Job 412 incurred the following costs: direct materials $1,200; direct labour 40 hours at $12 per hour; overheads are absorbed at 150% of direct labour cost. The total cost of Job 412 is:

Process A had the following data for the period: input 2,000 units costing $24,000; conversion costs $16,000; normal loss 5% of input, with scrap value of $4 per unit; actual output equalled expected output (no abnormal loss or gain). The cost per unit of good output is:

The difference between profit reported under absorption costing and marginal costing is due to:

A product sells for $40 per unit with variable costs of $25 per unit. Fixed costs are $90,000 per period. The break-even point in units is:

A product has a contribution to sales ratio of 40% and fixed costs of $60,000 per period. The sales revenue required to earn a profit of $20,000 is:

For most manufacturing businesses, the principal budget factor (key budget factor) is normally:

Which of the following is the most appropriate cost unit for a hotel?

A sales representative earns a basic salary of $1,800 per month plus commission of 4% on all sales above $20,000. In a month with total sales of $45,000, her total earnings are:

Profits of $84,000 are to be shared between partners A, B and C in the ratio 3 : 4 : 5. B’s share of the profit is:

An item is sold for $84, having been marked up by 40% on cost. The cost price of the item is:

A product is sold for $120 and the gross profit margin is 25% of selling price. The cost of the product is:

The list price of goods is $8,000. A trade discount of 15% is given, followed by a further quantity discount of 5% on the net price. The invoice value (before any cash discount) is:

An invoice of $5,000 carries credit terms of “3/10, n/30”. The customer pays on day 9 after the invoice date. The amount payable is:

A loan of $15,000 is taken out at 6% simple interest per annum for 4 years. The total interest payable is:

$10,000 is invested at 5% per annum compound interest. The total amount accumulated at the end of 3 years, to the nearest dollar, is:

A UK exporter sells goods invoiced at £8,000 to a customer in the United States. The exchange rate at the date of payment is £1 = $1.25. The amount received in US dollars is:

An importer purchases goods costing €4,500 from a European supplier. The exchange rate is £1 = €1.18. The cost of the goods in pounds sterling, to the nearest pound, is:

An employee is paid $15.00 per hour for a standard 40-hour week, with overtime paid at time and a half. In a week in which she worked 46 hours, her gross wage is:

A business has cost of sales of $480,000 for the year and an average inventory of $60,000. The rate of inventory turnover is:

The monthly sales of a business for the first six months of the year (in $’000) were: 12, 18, 15, 21, 24, 30. The arithmetic mean of monthly sales is:

A machine is purchased for $20,000 and depreciated at 25% per annum on the reducing balance basis. The carrying amount at the end of year 2 is:

The price of a product in 2020 (the base year) was $40. In 2024 the price was $52. The price index for 2024, based on 2020 = 100, is: