Accounting principles and policies: past paper questions
Real questions on accounting principles and policies
The newest 20 of 48 written questions, plus 68 multiple-choice. Open one to see it on the real paper.
- 7707/22 · 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 → - 7707/23 · October/November 2025 · Q3c(ii)[1]
Name the accounting principle that is being applied.
See it on the paper → - 7707/23 · October/November 2025 · Q4d[3]
State three advantages for Talula of forming a partnership with Sheila.
See it on the paper → - 7707/23 · October/November 2025 · Q4e[3]
Identify three clauses (other than how profit or loss will be shared) that the partnership agreement should cover if Talula agrees to the partnership with Sheila.
See it on the paper → - 7707/22 · May/June 2025 · Q1c[5]
Advise Kadima whether or not he should make the above changes. Justify your answer by providing points for and against making these changes.
See it on the paper → - 7707/22 · May/June 2025 · Q3e(i)[1]
how the principle of consistency is applied when charging depreciation. (i)
See it on the paper → - 7707/22 · May/June 2025 · Q3e(iii)[1]
which accounting principle Jasmine is applying by making an adjustment for rent prepaid.
See it on the paper → - 7707/22 · May/June 2025 · Q5d[5]
Advise Rexford whether or not he should employ a bookkeeper. Justify your answer by providing two points for and two points against employing a part-time bookkeeper.
See it on the paper → - 7707/22 · 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 → - 7707/22 · October/November 2024 · Q4a[1]
State one difference between a public limited company and a private limited company.
See it on the paper → - 7707/22 · October/November 2024 · Q4b[2]
Explain the difference between issued share capital and called up share capital.
See it on the paper → - 7707/22 · October/November 2024 · Q4c[2]
1. 2. (c) State two benefits of operating as a limited company. Y Limited’s financial year ends on 31 December each year. On 1 January 2023, the company had: 800 000 ordinary shares of $1 each, issued and fully paid. 300 000 5% redeemable preference shares of $0.50 each. Retained earnings of $62 000. General reserves o...
See it on the paper → - 7707/21 · May/June 2024 · Q5d(i)[1]
the accounting principle which Stella is following when she treats payments for small items which may last longer than one year, as revenue expenditure.
See it on the paper → - 7707/21 · May/June 2024 · Q5d(ii)[1]
one advantage of following the principle in 5(d)(i).
See it on the paper → - 7707/21 · May/June 2024 · Q5e[2]
State two advantages of maintaining a full set of double entry accounting records.
See it on the paper → - 7707/22 · 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 → - 7707/22 · May/June 2024 · Q4d[5]
Advise Tadeen and Yadid whether or not they should offer Raim a partnership. Justify your answer by providing points for and against offering Raim a partnership.
See it on the paper → - 7707/22 · October/November 2023 · Q2c[1]
State which accounting principle Sara is complying with by not recording any value for this efficiency in her financial statements. Sara has now been asked to supply a local drama school with theatrical costumes. The drama school would place an order with Sara each month and would require 60 days credit. REQUIRED
See it on the paper → - 7707/22 · October/November 2023 · Q2d[5]
Advise Sara whether she should start supplying the drama school with costumes. Justify your answer by providing advantages and disadvantages of supplying the costumes.
See it on the paper → - 7707/22 · October/November 2023 · Q3c[1]
State one reason why Lionel should keep double-entry bookkeeping records. Lionel currently makes cash sales only. He would like to start selling on credit and is considering whether to offer a 10% trade discount to regular customers or a 3% discount for payment within 21 days. REQUIRED
See it on the paper →
What examiners said
Many principles were given here. The qualities such as the efficiency of the staff are not recognised within the financial statements and therefore ‘money measurement’ is being complied with.
— Examiner report, October/November 2023, 7707/22 Q2(c) (Cambridge)
The decision to supply a drama school with costumes at the cost of an increased credit payment period was an opportunity to gain several marks for the majority of candidates. Advantages were identified regularly but disadvantages were too focused upon irrecoverable debts instead of the risk of irrecoverable debts and the potential to impact upon liquidity. Many answers referred to income throughou...
— Examiner report, October/November 2023, 7707/22 Q2(d) (Cambridge)
The mark scheme gives many examples for this one-mark question. Answers such as ‘prevents errors’ and ‘prevents fraud’ were not rewarded as emphasis is placed upon it is ‘easier to detect errors and frauds. Similarly, a single reference to ‘duality’ was too vague and required a more detailed explanation.
— Examiner report, October/November 2023, 7707/22 Q3(c) (Cambridge)
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