ZIMBABWE SCHOOL EXAMINATIONS COUNCIL <br> General Certificate of Education Ordinary Level
**PRINCIPLES OF ACCOUNTING**
PAPER 1 Multiple Choice
4051/1
1 hour 30 minutes
Additional materials: Multiple Choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended)
TIME 1 hour 30 minutes
INSTRUCTIONS TO CANDIDATES
Do not open this booklet until you are told to do so. Write your name, centre number and candidate number on the answer sheet in the spaces provided unless this has already been done for you.
There are forty questions in 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 very carefully the instructions on the answer sheet.
INFORMATION FOR CANDIDATES
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.
This question paper consists of 11 printed pages and 1 blank page. Copyright: Zimbabwe School Examinations Council, N2023.
Question 1
Which business activity provides a service?
A Bookseller
B Petrol dealer
C Shoe manufacturer
D Window cleaner
Question 2
Which of the following is the correct sequence of an accounting cycle?
A Ledger ⟶ trial balance ⟶ financial statements
B Subsidiary books ⟶ trial balance ⟶ ledger
C Transaction ⟶ financial statements ⟶ subsidiary books
D Transaction ⟶ trial balance → ledger
Question 3
Which of the following is a disadvantage of using electronic methods to process data?
A It is expensive to install.
B It has more errors.
C It requires big office space.
D It requires more labour.
Question 4
The following are computer hardware except
A keyboard.
B monitor.
C mouse.
D pastel.
Question 5
Which source document is used to record small payments made by the business?
A Cheque
B Invoice
C Receipt
D Voucher
Question 6
Sale of non-current assets on credit is recorded in the
A general journal.
B purchases journal.
C sales journal.
D sales returns journal.
Question 7
Which ledger section has accounts of credit suppliers?
A General ledger
B Private ledger
C Trade payables ledger
D Trade receivables ledger
Question 8
In the ledger, returns of goods by a customer is
A credited in the returns inwards account.
B credited in the returns outwards account.
C debited in the returns inwards account.
D debited in the returns outwards account.
Question 9
A payment for insurance was recorded in the rent payable account in error. This is an error of
A commission.
B complete reversal of entries.
C original entry.
D principle.
Question 10
Which set of accounts has debit entries in the trial balance?
A Discount allowed account and returns inwards account
B Discount allowed account and returns outwards account
C Discount received account and returns inwards account
D Discount received account and returns outwards account
Question 11
Which accounting concept was used when a cash payment for rent and rates was recorded both in the cash book and rent and rates account?
A Double entry
B Going concern
C Matching
D Prudence
Question 12
Which accounting concept states that policies and methods adopted should be maintained?
A Consistency
B Double entry
C Matching
D Prudence
Question 13
A statement that shows business performance for a specific period is
A a bank statement.
B a trial balance.
C an income statement.
D an opening statement.
Question 14
A list of assets and liabilities of a business on a given date is a
A bank statement.
B statement of changes in equity.
C statement of financial position.
D trial balance.
Question 15
When preparing financial statements, unused stationery is shown as
A a liability.
B an asset.
C an expense.
D income.
Question 16
Rent received in advance at the end of a financial year
A decreases current liabilities.
B decreases net profit.
C increases current liabilities.
D increases net profit.
Question 17
The closing entry for bad debts written off is
| | debit | credit | | :--- | :--- | :--- | | A | bad debts account | profit and loss account. | | B | debtors account | profit and loss account. | | C | profit and loss account | bad debts account. | | D | profit and loss account | debtors account. |
Question 18
Which one is shown as an expense in the preparation of an income statement?
A Commission earned
B Decrease in provision for bad debts
C Increase in provision for bad debts
D Inventory of stationery
Question 19
Which of the following items is debited in a trade receivables control account?
A Bad debts
B Discounts allowed
C Dishonoured cheques
D Returns inwards
Question 20
Cost of repainting a building was treated as capital expenditure. What was the effect on net profit and non-current assets?
| | Net profit | Non-current assets | | :--- | :--- | :--- | | A | overstated | overstated | | B | overstated | understated | | C | understated | overstated | | D | understated | understated |
Question 21
Which of the following is capital expenditure?
A Installing an air conditioning system in the building
B Paying rent for the building
C Renovating part of the building
D Repainting the building
Question 22
What is the source of information for discount allowed in a trade receivables control account?
A Cash book
B General journal
C Petty cash book
D Sales journal
Question 23
Which of the following items is used to update a cash book?
A Bank charges
B Bank errors
C Uncredited deposits
D Unpresented cheques
Question 24
Which of the following is a liquidity ratio?
A Margin
B Mark up
C Net profit percentage
D Rate of inventory turnover
Question 25
Which of the following items is included in the preparation of an income and expenditure account?
A Payments to suppliers
B Proceeds from disposal of non-current assets
C Profit from sale of refreshments
D Purchase of non-current assets
Question 26
Which of the following set of items has direct costs only?
A Manufacturing wages and supervisor's salary
B Patent fees and depreciation of plant
C Patent fees and supervisor's salary
D Royalties and manufacturing wages
Question 27
A trader maintained a petty cash book on imprest system with a weekly float of \(\$500\). The following petty expenses were paid during the week:
| | \(\$\) | | :--- | ---: | | Postage and stationery | 200 | | Travelling expenses | 150 | | Cleaning materials | 70 |
The amount required to restore the float was
A \(\$80\).
B \(\$420\).
C \(\$500\).
D \(\$920\).
Question 28
A trader had a net profit of \(\$12800\). The following errors were discovered: i. Sales were undercast by \(\$3500\). ii. Motor vehicle repairs of \(\$1200\) were omitted from the books.
The adjusted net profit after correcting the errors was
A \(\$8100\).
B \(\$10500\).
C \(\$15100\).
D \(\$17500\).