UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Subsidiary Level
and Advanced Level
Paper 1 Multiple Choice
Additional Materials: 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.
This document consists of 10 printed pages and 2 blank pages.
1 Expenditure on a machine during a year has included the following:
new engine – machine will now
produce more products per hour
How much of this expenditure should be treated as capital expenditure?
B $22 300
C $24 700
D $31 900
2 An item of capital expenditure has been incorrectly treated as revenue expenditure in the
accounts of a business.
What is the effect of this error on the accounts of the business?
3 A business buys a computer for $2200 on 1 January 2002. The computer will be used for four
years, after which time it will be sold for $280. The business uses the straight-line method of
What is the depreciation charge for the year ended 31 December 2003?
4 A vehic