This document consists of 11 printed pages and 1 blank page.
© UCLES 2007
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
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 2007
A club’s income and expenditure account for 2006 showed rent and rates as $4000.
On 31 December rent owing was $600 and rates paid in advance was $800.
What was the amount shown in the receipts and payments account for rent and rates for the year
ended 31 December 2006?
2 When preparing a sole trader’s annual accounts, no adjustments were made for prepayments at
the end of the year.
What is the effect of these omissions?
net profit overstated
net profit understated
current assets overstated
owner’s capital overstated
current assets understated owner’s capital understated
A business prepares its accounts to 31 December. Insurance premiums paid w