[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-159579-105":59,"doc-detail-159579-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","k1-financial-accounting-specimen-exam-answers","K1 Financial Accounting - Specimen Exam Answers","","Section A provides worked solutions and rationale for a set of accounting exam multiple-choice questions. The answers cover key areas such as accruals and prepayments adjustments, receivables collection and quick (acid test) ratio calculations, insurance prepayment measurement, and distinctions between goods despatched notes, customer invoices, purchase orders, and supplier invoices. It also addresses journal entry treatment for incorrect postings or missing invoices, the carry-forward of ledger balances versus income/expense period reset, and computations related to staff costs, profitability indicators, cash received, depreciation charges, discounts, allowance movements, suspense account entries, and rights issue proceeds and share capital allocation.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/k1-financial-accounting-specimen-exam-answers/159579/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/k1-financial-accounting-specimen-exam-answers/159579.png","ImageObject",300,407,{"name":92,"@type":93},"Theodore","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-07","2026-08-29",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",11,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"How are accruals and prepayments adjustments determined in the answers?","Question",{"text":113,"@type":114},"Accruals increase is calculated as the closing amount minus the opening amount, and the same approach is used for prepayments. The resulting differences are used to select the correct debit/credit amounts in the entries.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What ratio is calculated using trade receivables, credit sales, and a 365-day basis?",{"text":118,"@type":114},"The receivables collection period. It is computed as (trade receivables ÷ credit sales) × 365 days.",{"name":120,"@type":111,"acceptedAnswer":121},"What accounting entries are expected when a supplier invoice is incorrectly entered or sales invoices are missing?",{"text":122,"@type":114},"When purchases and sales modules are integrated, corresponding journal entries are made automatically. If an incorrect amount causes imbalanced entries, a suspense account is created and then investigated to identify the issue.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},159579,1788019825,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":140,"language":141,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":142,"faqs":143,"seo_title":144,"seo_description":67,"update_tm":130,"read_time":26},7971461740886,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","Section A  \n\n| Question | Correct Answer |  |  |  |  |  |  | Marks |\n| --- | --- | --- | --- | --- | --- | --- | --- | --- |\n| 1 | A and D |  |  |  |  |  |  | 2 |\n|  |  | Dr | Operating expenses |  | $200,000 |  |  |  |\n|  |  |  | Cr | Accruals |  | $200,000 |  |  |\n|  |  |  |  |  |  |  |  |  |\n|  |  | Dr | Prepayments |  | $300,000 |  |  |  |\n|  |  |  | Cr | Operating expenses |  | $300,000 |  |  |\n|  | Increase in accruals = $800,000- $600,000\u003Cbr>= $200,000\u003Cbr>Increase in prepayments = $400,000- $100,000\u003Cbr>= $300,000 |  |  |  |  |  |  |  |\n| 2 | B and C\u003Cbr>Receivables collection period of 16 days Quick (Acid test) ratio of 1.0:1\u003Cbr>Receivables collection period\u003Cbr>= (Trade receivables ÷ Credit sales) × 365 days = ($18m ÷ $400m) × 365 days\u003Cbr>= 16 days\u003Cbr>Quick (Acid test) ratio\u003Cbr>= (Current assets-Inventories) : Current liabilities = ($36 .8m- $14 .2m) : $22 .2m\u003Cbr>= $22 .6m : $22 .2m\u003Cbr>= 1.0:1 |  |  |  |  |  |  | 2 |\n| 3 | $800,000\u003Cbr>Prepayment for four months of insurance invoiced in advance = 4/5 months × $1m\u003Cbr>= $800,000\u003Cbr>Note: the figure which should be inserted into the answer area is 800\u003Cbr>|  |  |  |  |  |  | 2 |\n\n\n| 4 | A and D\u003Cbr>Goods despatched note\u003Cbr>Customer invoice\u003Cbr>A goods despatched note is sent alongside goods sent out from an entity’s warehouse. A customer invoice is also sent to a customer and states the ordered goods or services and the amount of consideration due to the entity in exchange for this. Both, therefore, represent goods or services sold (the sales process) .\u003Cbr>A purchase order is sent to a supplier to order goods or services. A supplier invoice is received from a supplier to state the ordered goods or services and the amount of consideration due to the supplier in exchange for this. Both, therefore, represent goods or services purchased (the purchases process) . | 2 |\n| --- | --- | --- |\n| 5 | B and D\u003Cbr>A supplier invoice received was incorrectly entered into the purchases system as $800 instead of $300\u003Cbr>No invoice was issued on the sales system for goods delivered to the customer on the year-end date\u003Cbr>As the purchases module is fully integrated, the appropriate journal entries will be made automatically and there is nothing in the trial balance to indicate this incorrect amount.\u003Cbr>An omission of a single sales invoice cannot be identified as it does not appear on the trial balance (i.e. , its absence amongst other sales is not visible) .\u003Cbr>For the other two items, an entry to the suspense account would automatically be made as they are imbalanced journal entries; therefore, this could be identified (i.e. , a suspense account exists on the trial balance which is then investigated) . | 2 |\n\n\n| 6 | A and D\u003Cbr>Amounts in asset, equity and liability accounts in the general ledger should be carried forward to the next period\u003Cbr>Amounts in income and expense accounts in the general ledger should be transferred to retained earnings at the period end\u003Cbr>Balances represent the position “as at” a point in time. The amounts should be carried forward to the next period and then be presented“as at”the end of the next period following any movements to those balances.\u003Cbr>Transactions represent the performance “for the period ended”(e.g. , for the financial year); therefore, must be “reset”to zero at the start of the next, new accounting period. This is achieved by transferring totals, ultimately, to retained earnings. | 2 |\n| --- | --- | --- |\n| 7 | D\u003Cbr>$13.8m\u003Cbr>Staff costs\u003Cbr>= Gross wages and salaries + Additional employer contributions = $12m + $1 .8m\u003Cbr>= $13.8m | 2 |\n| 8 | C\u003Cbr>Current ratio\u003Cbr>Operating profit margin, return on capital employed and interest cover are all measures of profitability and performance. | 2 |\n| 9 | C\u003Cbr>$105.7m\u003Cbr>Cash received from customers\u003Cbr>= Opening trade receivables + Revenue-Closing trade receivables = $12m + $118 .2m- $24 .5m\u003Cbr>= $105.7m | 2 |\n\n\n| 10 | C\u003Cbr>$2.625m\u003Cbr>Total depreciation charge\u003Cbr>= (1/20 years × $50m) existing + (6/240 months × ","cbCaicqFZ3aoyrJX","https://ap.wps.com/l/cbCaicqFZ3aoyrJX","pdf",235012,24,"English","# Section A\n## Accruals, prepayments and adjustments\n## Receivables, ratios and profitability measures\n## Invoicing, orders and journal treatment\n## Ledger carry-forward vs period-end transfer\n## Suspense account and rights issue calculations","[{\"question\":\"How are accruals and prepayments adjustments determined in the answers?\",\"answer\":\"Accruals increase is calculated as the closing amount minus the opening amount, and the same approach is used for prepayments. The resulting differences are used to select the correct debit/credit amounts in the entries.\"},{\"question\":\"What ratio is calculated using trade receivables, credit sales, and a 365-day basis?\",\"answer\":\"The receivables collection period. It is computed as (trade receivables ÷ credit sales) × 365 days.\"},{\"question\":\"What accounting entries are expected when a supplier invoice is incorrectly entered or sales invoices are missing?\",\"answer\":\"When purchases and sales modules are integrated, corresponding journal entries are made automatically. If an incorrect amount causes imbalanced entries, a suspense account is created and then investigated to identify the issue.\"}]","K1 Financial Accounting - Specimen Exam Answers | PDF"]