Pilot Paper from December 2011 onwards
Time allowed: 2 hours
ALL 50 questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor.
This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
Fundamentals Pilot Paper – Knowledge Module
ALL 50 questions are compulsory and MUST be attempted
Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to
each multiple choice question.
Each question is worth 2 marks.
Which of the following calculates a sole trader’s net profit for a ...view middle of the document...
On the due date she repaid the loan and paid the whole of the interest due on
the loan to that date.
(2) The company paid an annual insurance premium of $9,000 in 20X5, covering the year ending 31 August 20X6.
(3) In January 20X6 the company received rent from a tenant of $4,000 covering the six months to 31 December
For these items, what total figures should be included in the company’s statement of financial position as at
31 December 20X5?
A company’s income statement for the year ended 31 December 20X5 showed a net profit of $83,600. It was later
found that $18,000 paid for the purchase of a motor van had been debited to the motor expenses account. It is the
company’s policy to depreciate motor vans at 25% per year on the straight line basis, with a full year’s charge in the
year of acquisition.
What would the net profit be after adjusting for this error?
Xena has the following working capital ratios:
Which of the following statements is correct?
Xena’s liquidity and working capital has improved in 20X9
Xena is receiving cash from customers more quickly in 20X9 than in 20X8
Xena is suffering from a worsening liquidity position in 20X9
Xena is taking longer to pay suppliers in 20X9 than in 20X8
Which of the following statements is/are correct?
(1) A statement of cash flows prepared using the direct method produces a different figure to net cash from operating
activities from that produced if the indirect method is used
(2) Rights issues of shares do not feature in a statement of cash flows
(3) A surplus on revaluation of a non-current asset will not appear as an item in a statement of cash flows
(4) A profit on the sale of a non-current asset will appear as an item under cash flows from investing activities in the
statement of cash flows
and 3 only
and 4 only
and 4 only
10 A company receives rent from a large number of properties. The total received in the year ended 30 April 20X6 was
The following were the amounts of rent in advance and in arrears at 30 April 20X5 and 20X6:
Rent received in advance
Rent in arrears (all subsequently received)
30 April 20X5
30 April 20X6
What amount of rental income should appear in the company’s income statement for the year ended 30 April
11 Which of the following are differences between sole traders and limited liability...