WEEK ONE PRACTICE QUESTIONS
Question 1
On 1 January 2013 a business had net assets of $15,000 On 31 January 2013, net assets amounted to
£19,000. No capital had been introduced in January, but the owner had made drawings of $750. What
profits were made in January?
A $4,000
B $4,750
C $3,250
Question 2
On 1 January 2013 a business had net assets of $15,000 On 31 January 2013, net assets amounted to
£19,000. Additional capital of $1,000 had been introduced in January, but the owner had made drawings
of $400 What profits were made in January?
A $3,400
B $4,000
C $4,600
D $5,400
Question 3
On 1 January 2013 a business had net assets of $25,000 On 31 January 2013, net assets amounted to
£23,000. A loss of $7,000 had been made and the owner withdrew $1,000 to live on. What additional
capital was introduced to the business in January?
A $8,000
B $6,000
C $7,000
D $10,000
Question 4
On 1 January 2013 and 31 January 2013 a business had the following assets and liabilities:
WEEK ONE PRACTICE QUESTIONS
1 January 31 January $
$ Cash 10,000 12,000
Owed to suppliers 3,000 4,000
Owed from customers 2,000 1,000
Equipment 8,000 10,000
Bank loan 2,000 5,000
No additional capital had been introduced, but the owner withdrew $800 to live on.
What profit or loss was made in January?
A $1,000 loss
B $5,800
C $200 loss
D $1,800
Question 5
Wilson has a basic salary of $2,000 for the month. His income tax on the salary is $350 and state benefit
contributions amount to $180. His employers also pay state benefit contributions of $210.
In June Wilson is also entitled to a bonus of $100 on which no tax or deductions are payable.
How much is Wilson’s take-home pay for June?
A $1,260
B $1,360
C $1,540
D $1,570
Question 6
Sue earns a basic rate of $5.00 per hour for a 35-hour week. She is paid time and a half for any
additional hours. Last week Sue worked 43 hours.
What is Sue’s gross pay for last week?
A $175
WEEK ONE PRACTICE QUESTIONS
B $215
C $235
D $322.50
Question 7
From which account are wages and salaries paid directly to employees?
A Bank
B Payroll
C Wages and salaries control
D Wages and salaries expense
Question 8
A company has the following components in its wages calculations:
Gross wages calculated as $76,000
Deductions for employees’ taxes = $20,000
Deductions for employee pensions = £12,000.
Employer’s payroll tax calculated as $15,000 Employer’s pension contributions = $16,000
Which of the following is correct?
A Employees are paid $72,000 net; total employment cost to employer = $91,000
B Employees are paid $76,000 net; total employment cost to employer = $107,000
C Employees are paid $44,000 net; total employment cost to employer = $107,000
D Employees are paid $60,000 net; total employment cost to employer = $77,000
Question 9
Under most systems of tax, what do employers pay to employees?
A Gross wages
B Gross wages less employees’ deductions less employers’ payroll tax
C Gross wages less employees’ deductions
WEEK ONE PRACTICE QUESTIONS
D Gross wages less employers’ payroll tax
