Checkout the answer to a Cambridge International College-Past Questions Q1-AFBM in the details provided below.
The AFBM Q1 covers objective past questions in Accounting and Finance In Business and Management.
We have put together this electronic material to help students of Cambridge International College.
We sincerely help you understand the possible questions CIC will ask in the examination. Cambridge Accounting and Finance Questions are easy to answer.
For this reason, we have broken down some sample questions for you to understand and succeed in the examination.
Let’s look at this selected question in Accounting and Finance in Business and Management.
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Accounting and Finance in Business and Management
Place a tick in the box against the one correct statement in each set.
a. A company with limited cash flow should: [expand title=””] A is the answer -Cambridge Accounting Finance Questions – Why is D the answer?
As a matter of fact, when the totality of a business’ assets cannot pay its liability, we say the business is insolvent or bankrupt. For this reason, bankruptcy limits the cash flow of the business. [/expand]
- Declare bankruptcy to reduce payments necessary to creditors.
- Keep as many finished goods as possible in the stores/stock rooms.
- Keep stock levels just above minimum levels where possible.
- Increase the size of purchase orders to increase discounts gained.
b. An advantage of a database computer system is that: [expand title=””] D is the answer -Cambridge Accounting Finance Questions – Businesses need data base programmes in order to solve their specific needs. [/expand]
- It permits data to be shared between different authorized users, which reduces duplication of data input and storage.
- It reduces the number of terminals and peripherals need by a company data input to it.
- It requires only one program instead of many and will process any all data input to it.
- It is written especially for the organization and so will meet its needs exactly.
c. In business, “drawings” are: [expand title=””] B is the answer -Cambridge Accounting Finance Questions – Drawings occurs when the owner of a business withdraws money for purposes other than that of the business [/expand]
- The amounts of interest paid to partners are based on the capital accounts.
- Portions of profit or capital withdrawn from a business by it owners(s) for personal use.
- The trial balance figures will be used to prepare financial statements before final adjustments are made.
- The conclusion reached by management after consideration of the financial statements submitted.
The Other Questions
d. Managers need to have a flexible approach to a budget allocation: [expand title=””] A is the answer -Cambridge Accounting Finance Questions Budgets need to be flexible so they can adapt to the changing trends of the business [/expand]
- so they can change it when they need to show positive results.
- because that is the way of checking whether it is being under-spent or overspent.
- so they will not miss unanticipated business opportunities which might arise.
- to ensure that the master budget will always be as complete as is possible in the circumstances.
e. Depreciation arises: [expand title=””] D is the answer -Cambridge Accounting Finance Questions When a fixed asset is used over a period of time, the value reduces as a result of wear and tear [/expand]
- Due to changes in interest rates which alter the value of stocks.
- Due to the wear and tear of an asset for use over some time.
- Due to loss of or damage to stocks of goods held in an enterprise’s store.
- When the share value of a company decreases.
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