This document consists of 11 printed pages and 1 blank page.
© UCLES 2007
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Level
Paper 3 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
In a cash flow statement, which item is a cash outflow?
A a decrease in stock
B a decrease in trade debtors
C a decrease in trade creditors
D an issue of bonus shares
2 The amount shown on the cash flow statement for 2006 as taxation paid amounts to $96 000.
The profit and loss account extract of the company is as follows.
operating profit for the year
provision for taxation
profit after taxation
The liability for taxation at the 2005 year end was $100 000.
What is the total tax provision disclosed in the balance sheet for 2006?
A $14 000
B $110 000
C $114 000
D $210 000
3 X and Y are in partnership, sharing profits equally. They agree to admit Z as an equal partner.
Z is to introduce capi