A-level ACCOUNTING Paper 2 Accounting for analysis and decision making, Exams of Accounting

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Do not write outside the

AQA

[Document subtitle]

A-level ACCOUNTING

Paper 2 Accounting for

analysis and decision-

making

[DATE]

[COMPANY NAME]

[Company address]

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Do not write outside the box box 0 1 A business buys inventory on credit. Which book of prime entry is used to record this transaction? [1 mark] A Cash book B General journal C Purchases journal D Purchases returns journal

What is the impact on the statement of financial position of receiving a recovered debt that had previously been written off as irrecoverable? [1 mark] A Decrease capital, decrease current assets B Decrease capital, increase current assets C Increase capital, decrease current assets D Increase capital, increase current assets For multiple-choice questions only one^ answer per question is allowed. For each question completely fill in the circle alongside the appropriate answer. If you want to change your answer you must cross out your original answer as shown. If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown. CORRECT METHOD WRONG METHODS

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0 3 Which of the following is an advantage of being a sole trader? A They can sell shares to the general public. B They have full control over decision making. C They have limited liability. D They pay corporation tax. [1 mark] 0 4 A business pays royalties on each unit it manufactures. Which of the following describes the cost of the royalties? A Direct and semi-variable B Direct and variable C Indirect and semi-variable D Indirect and variable [1 mark]

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Which is the formula to calculate dividend cover? Dividend per share A × 100 Market price per share Market price per share B × 100 Dividend per share Ordinary share dividends paid C Profit after interest and tax Profit after interest and tax D Ordinary share dividends paid [1 mark]

Do not write outside the box 0 8 A manufacturer provides the following information: Total fixed costs £360 000 Unit variable cost £ Unit selling price £ Forecast output 20 000 units What is the margin of safety in units? [1 mark] A 9 000 B 11 000 C 14 000 D 15 500

Do not write outside the box 1 0 A manufacturer provides the following information: February March Budgeted sales (in units) 45 000 48 000 Closing inventory is to be maintained at 20% of the following month’s budgeted sales. The warehouse has a maximum capacity of 9 500 units. What is the budgeted production in units for February? [1 mark] A 44 400 B 45 500 C 45 600 D 54 500

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Do not write outside the box 1 2 Zhou runs a retail business. He provides the following information taken from the income statement for the year ended 30 April 2024. £ Revenue (12 600 units at £16) 201 600 Purchases (13 100 units at £6.80) 89 080 Opening inventory (2 900 units at £6.80) 19 720 Closing inventory (3 400 units at £6.80) 23 120 Additional information used in planning the budgeted income statement for the year ended 30 April 2025:

1. To remain competitive Zhou plans to reduce the selling price of each unit by 25%. This is expected to increase the number of units sold by 20%.
2. Zhou intends to switch suppliers. He has found a company willing to supply goods for 25% less than his current supplier. However, there will be a delivery cost of £0.15 for each unit purchased.
3. The number of units held at the end of the year is expected to reduce by 20%. Closing inventory should be valued at the most recent purchase price. Prepare the budgeted trading section of the income statement for the year ended 30 April 2025. [10 marks] Workings

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Do not write outside the box Turn over ► Zhou Budgeted trading section of the income statement for the year ended 30 April 2025

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Naomi is preparing her labour budget for August. She has provided the following forecasted information: Production 500 units Labour hours per unit 45 minutes Standard labour rate £12 per hour After allowing for holidays only 200 labour hours are available at the standard rate. Any additional hours used will have to be paid at a premium of 40% extra per hour. Prepare the labour budget for August. Show clearly the number of hours required and the total labour cost. [4 marks]

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