This document consists of 10 printed pages and 2 blank pages.
© UCLES 2008
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 2008
1 Which item should be treated as capital expenditure?
cost of carriage on the purchase of a fixed asset
cost of replacement of part of a fixed asset
C depreciation of a fixed asset
repairs to a fixed asset
2 A loan due for repayment in 20 months’ time has been included as a current liability.
What will be the effect when this is corrected?
increase net assets
increase net current assets
C no effect on net current assets
reduce net current assets
An item of machinery cost $60 000. The machinery was later sold for $8000 and the loss on
disposal was $3000.
What was the accumulated depreciation on the machinery on disposal?
A $46 000
B $49 000
C $52 000
D $55 000
Interest receivable account shows interest of $17 500 rece