Cambridge IGCSE™
ACCOUNTING 0452/12
Paper 1 Multiple Choice October/November 2025
1 hour 15 minutes
You must answer on the multiple choice answer sheet.
*3519534413*
You will need: Multiple choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
INSTRUCTIONS
There are thirty-five questions on this paper. Answer all questions.
For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet.
Follow the instructions on the multiple choice answer sheet.
Write in soft pencil.
Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
Do not use correction fluid.
Do not write on any bar codes.
You may use a calculator.
INFORMATION
The total mark for this paper is 35.
Each correct answer will score one mark.
Any rough working should be done on this question paper.
This document has 12 pages.
11_0452_12_2025_1.9c
© UCLES 2025 [Turn over
2
1 What is not an example of a book-keeping entry?
A an entry made in the bank column of the cash book for a cheque received
B any goods returned by a customer entered in the sales returns journal
C cost of goods purchased on credit entered in the supplier’s account
D expenses paid during the year entered in the income statement
2 What are liabilities?
A amounts that are owed to or owned by a business
B amounts that are owed to others for resources provided
C amounts that need to be written off
D amounts that the owner owes to the business
3 Sally maintains a full set of accounting records.
She has entered the following transactions in her cash book.
1 A cheque for $200 was received from a credit customer.
2 An insurance premium of $200 was paid by cheque.
3 Petrol for the delivery van was paid for in cash.
4 Total cash sales of $400 were received.
Which transactions will then be entered into the nominal ledger?
A 1 and 4 B 1 only C 2, 3 and 4 D 2 and 3 only
4 An account in the purchases ledger of X Limited has a debit balance.
What does this balance represent?
A an amount owed by X Limited
B an amount paid to X Limited
C a prepayment made by X Limited
D total purchases made by X Limited
© UCLES 2025 11_0452_12_2025_1.9c
3
5 The following account appeared in the books of Mary.
Paul account
$ $
April 1 balance b / d 90 April 21 returns 25
14 sales 150 30 bank 88
discount 2
___ balance c / d 125
240 240
Which statement is correct?
A On 1 April, Paul owed Mary $90.
B On 14 April, Paul sold goods for $150 to Mary.
C On 21 April, Mary returned goods for $25 to Paul.
D On 30 April, Mary owed Paul $125.
6 A supplier has received a debit note from a customer.
What does the supplier use this debit note for?
A to complete a statement of account
B to correct the sales journal
C to make an entry in the sales returns journal
D to prepare a credit note
7 Sue allows 2% cash discount to credit customers who settle their account within 28 days.
Jane purchased goods for $200 from Sue on 10 September but returned these goods to Sue on
15 September.
Which entry did Sue make for the transaction on 15 September?
A purchases returns journal $196
B purchases returns journal $200
C sales returns journal $196
D sales returns journal $200
© UCLES 2025 11_0452_12_2025_1.9c [Turn over
4
8 A trader prepared their trial balance which showed the debit column total of $45 000 and the credit
column total of $40 000.
The following errors were then discovered.
1 iscount received account balance of $500 was listed in the debit column of the
trial balance.
2 eturns outwards account balance of $250 was omitted from the trial balance.
3 ebit column of the trial balance was overcast by $3750.
All errors were corrected and the trial balance totals agreed.
What w the trial balance totals after the correction of errors?
A $40 500 B $40 750 C $41 000 D $ 44 500
9 Ahmed’s trial balance totals did not agree. He entered the difference in a suspense account.
The following errors were later discovered.
1 A payment of $200 for a vehicle repair had been debited to the motor vehicles
account.
2 Drawings of $150, correctly recorded in the cash book, had not been posted to the
drawings account.
3 The sales journal had been undercast by $900.
What was the original balance on Ahmed’s suspense account?
A $550 B $750 C $950 D $1050
© UCLES 2025 11_0452_12_2025_1.9c
5
10 Susanne is a trader. She received a cheque from Zahir, a credit customer, for $300. This cheque
was incorrectly debited to Zah ’ account and credited to the bank account.
Which journal entry corrects this error?
debit credit
$ $
A bank 300
Zahir 300
B bank 600
Zahir 600
C Zahir 300
bank 300
D Zahir 600
bank 600
11 A trial balance does not agree and a suspense account is opened.
Which statement is not correct?
A Errors of commission and errors of original entry are entered in the suspense account.
B The trial balance difference is entered in the suspense account.
C The suspense account remains open until all the errors preventing the agreement of the trial
balance have been corrected.
D When all of the errors found have been corrected there will be no balance carried down
in the suspense account.
12 After receiving her bank statement, Lyn updated her cash book.
Which items would reduce the overdrawn balance in the cash book?
1 bank interest received
2 credit transfer received
3 direct debit payment
A 1 and 2 B 1 and 3 C 2 and 3 D 3 only
© UCLES 2025 11_0452_12_2025_1.9c [Turn over
6
13 Natalie is both a customer and a supplier to Gustav.
On 28 June, Gustav s account in Natalie s purchases ledger had a credit balance of $295,
and his account in Natalie s sales ledger had a debit balance of $140.
Gustav wishes to offset one amount against the other.
Which entries will Gustav make in his control accounts?
debit credit
A purchases ledger control account $140 sales ledger control account $140
B purchases ledger control account $155 sales ledger control account $155
C sales ledger control account $140 purchases ledger control account $140
D sales ledger control account $155 purchases ledger control account $155
14 Johnny prepared his sales ledger control account. The figures in it came from several different
sources.
Which statements are correct?
1 The source of the opening balance was the sales account.
2 The discount allowed was totalled in the three-column cash book.
3 The irrecoverable debts were posted from the general journal.
A 1 and 2 B 1 and 3 C 2 and 3 D 3 only
15 At the beginning of the year on 1 January, Zac paid $420 for an equipment repair. He entered this
amount in the equipment account.
At the end of the year on 31 December, depreciation of 20% per annum was charged on the balance
of the equipment account, using the straight-line method.
What was the overall effect on the book value of the equipment on 31 December?
A $84 understated
B $336 overstated
C $420 overstated
D $504 understated
© UCLES 2025 11_0452_12_2025_1.9c
7
16 Why does a business need to provide for depreciation in its accounting records?
A to ensure availability of funds to replace its old non-current assets
B to ensure that its current assets value is not overstated
C to record as an expense the amount of the non-current assets used up during the year
D to show its non-current assets at their market value
17 An asset originally costing $20 000 had been depreciated by $15 000 when it was sold for $3000.
Which entry will be shown in the disposal account to record the amount to be transferred to the
income statement?
A $2000 credit
B $2000 debit
C $8000 credit
D $8000 debit
18 Why should prepaid income be shown in the financial statements of a business?
A so that credit customers pay the correct amount
B so that payments to credit suppliers are correctly recorded
C so that the statement of financial position shows the correct current assets
D so that the total income is matched against the total costs of the same period
19 What is the effect on total assets and on equity in the statement of financial position if the value
of closing inventory is overstated?
total assets equity
A overstated overstated
B overstated understated
C understated overstated
D understated understated
© UCLES 2025 11_0452_12_2025_1.9c [Turn over
8
20 Who works in a service business?
1 a hairdresser
2 an estate agent
3 a car mechanic
4 a car salesperson
A 1, 2 and 3
B 1 and 2 only
C 3 and 4
D
21 At the beginning of the year on 1 January, Keith was owed $1500 commission by clients.
During the year, Keith received $18 000 commission.
At the end of the year on 31 December, Keith was owed $800 commission by clients.
How much commission did Keith record in his income statement for the year ended 31 December?
A $15 700 B $17 300 C $18 700 D $20 300
22 Jack and Gill are setting up in business as partners and are considering writing up a partnership
agreement.
What is not included in any partnership agreement drawn up by them?
A the rate of interest to be charged on drawings
B the rate of interest to be paid on a loan from a partner
C the rate of interest to be paid on a loan received from the bank
D the rate of interest to be paid on the capital invested by each partner
23 Raj and Rohit are in partnership sharing profits and losses in the ratio of 2 : 1. Raj is entitled to an
annual salary of $3000. The profit for the year was $14 100 for the year ended 31 December 2024.
On 1 January 2024, Raj’s current account had a debit balance of $1800.
What was the credit balance on Raj’s current account on 1 January 2025?
A $8600 B $10 400 C $12 200 D $12 400
© UCLES 2025 11_0452_12_2025_1.9c
9
24 BCD Limited provided the following information.
ordinary shares 300 000
retained earnings 200 000
debentures 170 000
How much was the equity and the capital employed of BCD Limited?
equity capital employed
$ $
A 300 000 470 000
B 300 000 670 000
C 500 000 470 000
D 500 000 670 000
25 Which statement correctly describes called-up share capital?
A all share capital which has been issued to shareholders
B shares which have been issued and those not yet issued
C the share capital for which payment has been requested
D the value of shares for which payment has been received
26 A sports club was established on 1 January. It has a clubhouse and also runs a snack bar for its
members.
Which items would be included in the receipts and payments account for the first year ended
31 December?
1 new furniture to be used in the clubhouse, paid by credit transfer
2 subscriptions paid by club members in advance for the next financial year
3 subscriptions owing by club members at the end of the financial year
4 snack bar wages owing at the end of the financial year
A 1 and 2 B 1 and 4 C 2 and 3 D 3 and 4
© UCLES 2025 11_0452_12_2025_1.9c [Turn over
10
27 A sports club started running a café, selling hot and cold drinks and confectionery, on 1 January 2024.
$
sales 3200
purchases 1750
wages paid to café assistant 500
inventory at 31 December 2024 250
What is the profit on the café for the year ended 31 December 2024?
A $700 B $950 C $1200 D $1450
28 A manufacturing business provided the following information.
prime cost 236 000
factory overheads 42 000
opening work in progress 8 000
closing work in progress 6 000
What was the factory cost of production transferred to the income statement?
A $234 000 B $238 000 C $276 000 D $280 000
29 Gem has been in business for many years. On
that date, he paid three months insurance on his factory, totalling $900.
What should Gem enter for insurance in his statement of financial position on 31 March?
A $300 in current assets
B $300 in current liabilities
C $600 in current assets
D $600 in current liabilities
© UCLES 2025 11_0452_12_2025_1.9c
11
30 Munira has not maintained a full set of accounting records.
How ould she calculate credit purchases for ?
A payments to credit suppliers + closing trade payables – discounts received – opening
trade payables
B payments to credit suppliers – closing trade payables + discounts received + opening
trade payables
C payments to credit suppliers – closing trade payables – discounts received + opening
trade payables
D payments to credit suppliers + closing trade payables + discounts received – opening
trade payables
31 The assets of a business increased by $22 000 and its liabilities decreased by $6000 over a
one year period.
During this period, the owner invested an additional $4000 of private funds into the business and
withdrew $7000 for personal use.
How much was the profit for the year?
A $13 000 B $17 000 C $19 000 D $31 000
32 Jonny provided the following information.
inventory 3500
cash 100
bank overdraft 1900
trade receivables 2400
trade payables 2100
What was Jonny s current ratio?
A 1.33 : 1 B 1.50 : 1 C 1.58 : 1 D 1.95 : 1
© UCLES 2025 11_0452_12_2025_1.9c [Turn over
12
33 Jose runs a business providing accounting and book-keeping services.
What is not relevant in analysing his business financial statements?
A current ratio
B profit margin
C rate of inventory turnover
D return on capital employed
34 Jamila’s business sells one type of product only. She provided the following information.
year 1 year 2
number of units sold 1000 1000
sales revenue $8000 $10 800
rate of inventory turnover 28 days 31 days
What happened in year 2?
A ales price decreased and goods were sold faster.
B ales price decreased and goods were sold more slowly.
C les price increased and goods were sold faster.
D ales price increased and goods were sold more slowly.
35 Antionette decides to treat a calculator bought for her large business as an expense instead of as
a non-current asset even though it will be used for several years.
Which principle did Antionette apply in deciding to account for the calculator as an expense?
A duality
B historic cost
C materiality
D money measurement
© UCLES 2025 11_0452_12_2025_1.9c