Accounting principles and policies: past paper questions
Real questions on accounting principles and policies
The newest 11 of 11 written questions, plus 34 multiple-choice. Open one to see it on the real paper.
- 0985/21 · May/June 2026 · Q4e[1]
State which accounting principle Sally is applying when she does this.
See it on the paper → - 0985/22 · May/June 2026 · Q1b(ii)[1]
State which accounting concept Saleh is following when he records a contra between the sales ledger and the purchases ledger. Saleh is concerned about the level of his irrecoverable debts. He is considering increasing the cash discount allowed from 3% to 5% for payments within 7 days of the invoice. He would also charg...
See it on the paper → - 0985/22 · October/November 2025 · Q4c(ii)[1]
Name the accounting principle being applied when creating a provision for doubtful debts. The directors of AY Limited have been considering buying a new piece of equipment costing $75 000. A machinery supplier has approached them, offering a 15% discount on this equipment if they make an immediate purchase. The supplie...
See it on the paper → - 0985/21 · May/June 2025 · Q5c[1]
State how Grace is applying the historic cost accounting principle when she prepares her financial statements. Grace is considering producing the handbags in her factory instead of buying them in. REQUIRED
See it on the paper → - 0985/22 · May/June 2025 · Q3e(i)[1]
how the principle of consistency is applied when charging depreciation. (i)
See it on the paper → - 0985/22 · May/June 2025 · Q3e(iii)[1]
which accounting principle Jasmine is applying by making an adjustment for rent prepaid.
See it on the paper → - 0985/22 · October/November 2024 · Q2e(i)[1]
Which accounting principle would he be applying by creating a provision for doubtful debts?
See it on the paper → - 0985/22 · May/June 2024 · Q4c(ii)[1]
which accounting principle reflects the partners’ intention to continue trading indefinitely. The partners employ one lawyer and office staff. The lawyer, Lakia is paid $25 000 but has decided to leave. Tadeen and Yadid have found a replacement lawyer, Raim. He has worked as a lawyer for 15 years and is well known in t...
See it on the paper → - 0985/21 · May/June 2022 · Q4c[2]
Explain the meaning and importance of the principle of consistency in the preparation of financial statements.
See it on the paper → - 0985/22 · May/June 2022 · Q4a(ii)[1]
State the accounting principle used to value inventory.
See it on the paper → - 0985/22 · May/June 2020 · Q1c[4]
Name one accounting principle applied by Bilal in each of the following situations. accounting principle The double entry for the posting of the purchases journal entries is completed by posting the individual amounts to the purchases ledger. The purchase of goods on 5 April did not include goods costing $55 which Bila...
See it on the paper →
What examiners said
This question asked for the meaning and importance of the principle of consistency in the preparation of financial statements. It is important to understand that the principle of consistency requires that once an accounting method is selected it should be applied consistently from one financial year to the next, and not just consistently throughout one financial year. This ensures that the profit...
— Examiner report, May/June 2022, 0985/21 Q4(c) (Cambridge)
Basic knowledge required of the accounting principle of ‘prudence’. Ideally this principle can be linked with the topic and methods used for inventory valuation in the preceding Question (3ai).
— Examiner report, May/June 2022, 0985/22 Q4(a)(ii) (Cambridge)
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