UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Ordinary Level
PRINCIPLES OF ACCOUNTS
Paper 1 Multiple Choice
1 hour 15 minutes
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 forty 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 12 printed pages.
© UCLES 2006
A cheque has been received from X, a debtor.
How is this transaction recorded in the books?
2 What would a business use to pay for goods?
statement of account
3 What is entered in a business’s general journal?
A purchase of a new motor vehicle on credit
return of faulty goods by a credit customer
standing order for payment of insurance premium
transfer of surplus office cash into the bank
A provision for doubtful debts is to be reduced.
Which book of prime entry will be used?
B general journal
C purchases journal