POA 7087 Theory

POA TYS Theory questions [7087 syllabus] Note: the 7078 syllabus starts from 2021 onwards. 2024 Paper 1 1. State two features of a sole proprietorship [CHAP1: intro to accounting] - Sole-owner has full control over all business operations - Minimal administrative duties to adhere to 2. Suggest one way a business might improve its quick ratio [CHAP16: financial statement analysis]] - Increasing sources of cash (i.e. additional capital to business) 3. State one difference between the financial statements of a trading business and service business [CHAP5: trial balance and financial statement] - Financial statements of trading businesses include sales and cost of sales which are not found in that of a service business ⊹ ˖͙͘͡ ★ Note by the creator! - this document may not cover all potentially tested questions, rmb that this is an updated syllabus!! study ur notes!! - unfortunately, poa theory qns demand word-for-word definitions (i dread it, but oh well study hard i guess TT) - no, this is not taken from the TYS answer booklet, but is made with reference to the POA textbook + TYS answer booklet here and there (but mostly textbook info) so dont worry if it doesnt seem to match up with ur answer booklets!! - know how to identify ur topics! This doc isnt sorted by chapters as some questions interlink more than one chapter, but its beneficial to be able to identify which specific chapter a certain qn comes up in!

2024 Paper 2 1. Define dividends [CHAP14: equities] - The portion of retained earnings that are distributed to the shareholders. 2. Two features of a limited liability partnership [CHAP1: intro to accounting] - Owned by two or more partners that contribute capital to the LLC - Has few regulatory duties to comply with 3. Distinguish between profit margin and profit for the year [CHAP16: financial statement analysis] - Profit margin: deducting cost of sales from sales revenue - Profit for the year: deducting other expenses from gross profit and adding other income 4. Give two examples of costs , other than purchase price , which a business might include in the cost of inventory purchased [CHAP9: inventories] - Import tax for purchase of inventory - Insurance for import of inventory 5. Suggest a way a business could improve the gross profit margin of the business. [CHAP16: financial statement analysis] - Increase sales revenue by selling goods at a higher price . 6. Suggest two further ways a business could improve the profit for the year of the business. [CHAP5: trial balance and financial state