This document consists of 10 printed pages and 2 blank pages.
© UCLES 2009
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Ordinary Level
PRINCIPLES OF ACCOUNTS
Paper 1 Multiple Choice
Multiple Choice Answer Sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
READ THESE INSTRUCTIONS FIRST
Write in soft pencil.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Write your name, Centre number and candidate number on the Answer Sheet in the spaces provided
unless this has been done for you.
There are thirty questions on this paper. Answer all questions. For each question there are four possible
answers A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
Calculators may be used.
© UCLES 2009
1 Which best describes the assets of a business?
A cash and items that should turn into cash in the near future
B cash invested by the owner of the business
items bought for long term use by the business
items owing to or owned by the business
2 What is true of a computerised accounting system?
A The computer will automatically correct inaccurate input.
B The data can be used for a number of different uses.
C The design of the system cannot be modified.
D The possibility of financial fraud is eliminated.
A trader started business on 1 January 2007. He prepared accounting statements for the first two
years of trading.
For which purpose will these accounting statements not be used?
to calculate the change in the business’s goodwill
to evaluate the past performanc