ZIMSEC O-Level Principles of Accounts Paper 1 June 2024 Question Paper

About this question paper

This is the ZIMSEC O-Level Principles of Accounts question paper for Paper 1 from June 2024. Use it for exam practice under timed conditions. The paper code is 4051/1. Time allowed: 1 hour 30 minutes.

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Extracted text

# ZIMBABWE SCHOOL EXAMINATIONS COUNCIL
General Certificate of Education Ordinary Level

**PRINCIPLES OF ACCOUNTING**

**PAPER 1 Multiple Choice**
1 hour 30 minutes
JUNE 2024 SESSION

Additional materials:
Multiple Choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
Calculator (Optional)

### INSTRUCTIONS TO CANDIDATES

Answer all questions. For each question, there are four possible answers, A, B, C and D. Choose the correct answer. Record your choice in soft pencil on the separate answer sheet provided.

Read very carefully the instructions on the answer sheet.

### INFORMATION FOR CANDIDATES

There are forty questions in this paper. Each correct answer will score one mark. Any rough working should be done on this question paper.

## Question 1
Which of the following are assets only?

A Cash, inventory and payables

B Cash, payables and machinery

C Machinery, receivables and inventory

D Premises, bank overdraft and plant

## Question 2
What comes after the ledger in the accounting cycle?

A Source documents

B Subsidiary books

C Transactions

D Trial balance

## Question 3
Which of the following items is a set of input devices?

A Keyboard and mouse

B Keyboard and speakers

C Mouse and visual display unit

D Speakers and monitor

## Question 4
Which document is used to correct an undercharge?

A Bank statement

B Credit note

C Debit note

D Statement of account

## Question 5
Which of the following transactions is recorded in the purchases journal?

A Purchased goods by cheque

B Purchased goods on credit from Tendai

C Purchased machinery by cheque

D Purchased machinery on credit from A. T. Motors

## Question 6
Rent account is found in the

A general ledger.

B private ledger.

C trade payables ledger.

D trade receivables ledger.

## Question 7
Which error is not revealed by a trial balance?

A Compensating error

B Completing double entry with different figures

C Error in extraction of balances

D Single entry

## Question 8
A club excluded subscriptions prepaid at the end of financial year from the income and expenditure account.
This is in accordance with

A going concern concept.

B historical concept.

C matching concept.

D prudence concept.

## Question 9
Which of the following is classified as a current asset in the statement of financial position?

A bank loan

B bank overdraft

C trade payables

D trade receivables

## Question 10
What is debited in an asset disposal account?

A Cost price of asset

B Loss on disposal

C Proceeds from disposal

D Provision for depreciation

## Question 11
Which of the following is revenue expenditure?

A Cost of maintaining a non-current asset

B Cost of painting a non-current asset

C Cost of transporting a non-current asset

D Legal costs of acquiring a non-current asset

## Question 12
Which of the following shows correct source of information for control account items?

Item

A Bad debts

B Returns inwards

C Returns outwards

D Set off

## Source

cash book

Purchases returns journal

sales returns journal

general journal

## Question 13
When updating a cash book which item is recorded on the debit side?

A Bank charges

B Dividends received

C Interest on bank overdraft

D Stop order

## Question 14
Mark up is obtained by

A \(\frac{\text { Gross Profit }}{\text { Cost of good sold }} \times \frac{100}{1}\)

B \(\frac{\text { Gross Profit }}{\text { Turnover }} \times \frac{100}{1}\)

C \(\frac{\text { Net Profit }}{\text { Cost of goods sold }} \times \frac{100}{1}\)

D \(\frac{\text { Net Profit }}{\text { Turnover }} \times \frac{100}{1}\)

## Question 15
Closing capital can be calculated as

A opening capital - net profit - drawings.

B opening capital + net profit - drawings.

C opening capital - net profit + drawings.

D opening capital + net profit + drawings.

## Question 16
Which of the following items is debited to a receipts and payments account?

A Payments to suppliers

B Proceeds from sale of sports equipment

C Purchase of refreshments

D Purchase of sports equipment

## Question 17
Current ratio is

A \(\frac{\text{total current assets}}{\text{current liabilities}}\).

B \(\frac{\text{total current assets - closing inventory}}{\text{current liabilities}}\).

C \(\frac{\text{total current assets - opening inventory}}{\text{current liabilities}}\).

D \(\frac{\text{total current assets}}{\text{total liabilities}}\).

## Question 18
Which of the following ratios is calculated using cost of sales?

A Current ratio

B Margin

C Mark up

D Quick ratio

## Question 19
In a manufacturing business, which is a factory overhead?

A Machine lubricants

B Manufacturing wages

C Patent fees

D Royalties

## Question 20
Cost of raw materials consumed is

A opening inventory of raw materials - purchase of raw materials - carriage on purchases - closing inventory of raw material.

B opening inventory of raw materials - purchase of raw materials + carriage on purchases - closing inventory of raw material.

C opening inventory of raw materials + purchase of raw materials - carriage on purchases - closing inventory of raw material.

D opening inventory of raw materials + purchase of raw materials + carriage on purchases - closing inventory of raw material.

## Question 21
Which of the following items are credited to a partner's current account?

A Interest on capital and interest on drawings

B Interest on capital and share of profits

C Interest on drawings and share of profits

D Interest on drawings and drawings

## Question 22
What is used by partnerships to limit cash or goods taken for personal use by partners?

A Interest on capital

B Interest on current accounts

C Interest on drawings

D Partner's salary

## Question 23
Shareholders' funds is a result of adding

A authorised capital and issued capital.

B issued capital and debentures.

C issued capital and reserves.

D reserves and debentures.

## Question 24
Which of the following business ethics is applied when employees follow rules and …