This document consists of 10 printed pages and 2 blank pages.
© 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
1 Which item is revenue expenditure?
cost of painting new office premises during construction
cost of repairs to factory plant and machinery
legal fees for the purchase of new factory premises
D wages of a company’s own workmen for building an office extension
A customer paid a deposit in advance for goods to be supplied at a later date.
How should this be recorded in the seller’s books?
3 On 1 October 2004 a company purchased machinery for $26 000. It was decided to depreciate
the asset using the reducing balance method at a rate of 20 % per annum.
On 30 September 2006 the asset was sold for $12 000.
What is the profit or loss on disposal?