Practise 41 real questions on Accounting concepts and principles from 2021 to 2026. See the answer and explanation as soon as you answer.
Accounting concepts and principles is one of the 6 main topics in our O Level Accounting (Cambridge (CAIE) 7707) question bank, and about 9% of its real questions come from it. Tayyari Karo has 41 real questions on this topic from 2021 to 2026, from Paper 1; 41 are multiple choice and marked instantly, and the rest are structured questions with a model answer. By difficulty: 25 easy, 16 medium.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
A business purchased a set of rulers that cost $9. The set of rulers was expected to last for several years, but the business did not treat it as a non-current asset.
Which accounting principle was the business following?
Answer: C. materiality
The amount is too small to matter, so it is treated as an expense: materiality.
The objective of understandability assumes users possess what?
Answer: D. reasonable knowledge of accounting
Understandability assumes users have reasonable business/accounting knowledge.
William received an order from James to supply goods on credit. When should William regard the revenue as earned?
Answer: B. when William delivers the goods
Revenue is earned on delivery of goods (realisation concept).
Manvinder paid a cheque for $1000 into a business bank account, debiting bank and crediting capital. Which principles did he apply?
Answer: A. business entity and duality
Business entity (separate records) and duality (double entry).
Which accounting policy requires that the information in financial statements is free from significant errors and bias?
Answer: C. reliability
Reliability (faithful representation) requires freedom from material error and bias.
Which providers of funds to a limited liability company receive a fixed rate of return on their investment?
ordinary shareholders / preference shareholders / debenture holders
Answer: C. preference shareholders and debenture holders
| Session | Paper 1 |
|---|---|
| May/June 2026 | 3 |
| May/June 2025 | 5 |
| Oct/Nov 2025 | 3 |
| May/June 2024 | 4 |
| Oct/Nov 2024 | 4 |
| May/June 2023 | 4 |
| Oct/Nov 2023 | 3 |
| May/June 2022 | 2 |
| Oct/Nov 2022 | 5 |
| May/June 2021 | 4 |
| Oct/Nov 2021 | 4 |
41 real O Level Accounting (7707) questions on Accounting concepts and principles from 2021 to 2026, from Paper 1. Each one shows the year, session and paper it came from.
Yes. Every question shows the correct answer and a short explanation the moment you answer.
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