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.
© UCLES 2006
1 What would be treated as part of the capital cost of the purchase of a building?
1 legal costs of the purchase
2 redecoration of the building
3 installation of air conditioning needed for the machinery in the building
A 1 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3
In the books of Y how could a credit entry of $500 in X’s account have arisen?
A X bought goods from Y
B X returned goods to Y
C Y made a payment to X
D Y returned goods to X
A company’s net profit is $20 000. Capital receipts of $5000 have been treated as revenue
receipts. Capital expenditure of $4000 has been treated as revenue expenditure.
What is the correct net profit figure?