IGCSE Accounting: Accounting concepts, ethics, technology and sustainability (Cambridge 0452) – Practice Questions

Syllabus edition note. This resource follows the Cambridge IGCSE Accounting 0452 syllabus (and Cambridge O Level Accounting 7707, which has the same subject content for the same series) for exams in 2027, 2028 and 2029 (version 1), first examined in the March 2027 series in India and the June 2027 series elsewhere. If you sit 0452 in November 2026, you sit the 2026 syllabus (version 2), which differs: Paper 1 has 35 multiple-choice marks in 1 hour 15 minutes, not 40 marks in 1 hour 30 minutes; Topic 7 is “Accounting principles and policies”, without 7.2 Ethical considerations or 7.3 Technology and sustainability; 4.4 is “Irrecoverable debts and provision for doubtful debts”; income statements are named instead of statements of profit or loss; three-column running balance accounts are not required; Clubs and societies is 5.4 and Manufacturing accounts 5.5; and 6.3 is “Inter-firm comparison”. For this topic, the 2026 syllabus calls the same ten items accounting principles, and its 7.2 is Accounting policies (the influence of international accounting standards and the objectives of comparability, relevance, reliability and understandability), which the 2027-2029 syllabus removes. If you sit in November 2026, work from the 2026 syllabus on the Cambridge International website.

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover sections 7.1 Accounting concepts, 7.2 Ethical considerations and 7.3 Technology and sustainability of the Cambridge IGCSE Accounting 0452 syllabus for exams in 2027, 2028 and 2029 (version 1). All candidates follow the same content. Use them with the study guide, the revision notes, the earlier practice set, the course hub and the checklist. Businesses and figures are invented; amounts are in dollars.

Questions

1. Cedar Lane Florist carries out three transactions.

(a) State the account debited and the account credited for each. (i) The owner pays 12,000 into a new business bank account. (ii) The business buys a display fridge for 3,400 on credit from a supplier. (iii) The business pays the supplier 1,000 by bank transfer. [3] (b) Name the accounting concept that requires both entries. [1]

2. Orchard Gate Studios has a year ended 31 December 2028.

(a) On 1 December 2028 the studio received 4,500 from a tenant who sublets a room for three months from that date. Calculate the rent income for 2028 and the income received in advance at 31 December 2028. [2] (b) Electricity paid during 2028 was 2,640, including 420 for the last bill of 2027. A bill of 690 for October to December 2028 is unpaid. Calculate the electricity expense for 2028. [2] (c) Name the concept that explains why the expense is not simply the cash paid. [1]

3. Hazelmere Garden Centre counts these items in its closing inventory.

Line	Quantity	Cost per unit	Net realisable value per unit
Compost bags	50	6.40	5.20
Plant pots	80	3.50	4.60
Gloves (pairs)	30	4.00	2.50

(a) Calculate the value of each line at the lower of cost and net realisable value, and the total. [4] (b) State how much lower the profit is than if all inventory were valued at cost, and name the concept applied. [2]

4. Tanvir Print Works buys a hole punch for 22, expected to last five years, and a printing machine for 6,500.

(a) Explain how the materiality concept affects the treatment of each item. [2] (b) After six months the machine could be sold for 7,300. State whether this rise is recorded and name the concept. [2] (c) The machine operator is highly skilled. Explain why this is not recorded as an asset, naming the concept. [2]

5. (a) Explain how the consistency concept helps a lender who compares a business’s profit for two years. [2] (b) A studio’s fittings have a net book value of 5,200. The owner announces that the studio will close in two months and expects to sell the fittings for 1,900. Explain which assumption no longer holds and which value is more relevant. [2]

6. State the fundamental principle most clearly not applied in each situation.

(a) A payroll clerk tells a friend how much the manager earns. [1] (b) A book-keeper records a sale to a customer who does not exist so that sales look higher. [1] (c) An assistant prepares a bank reconciliation without learning how, and sends it unchecked. [1] (d) An accountant approves the accounts of a company where her sister is a director without asking questions. [1] (e) An accountant helps a client leave cash sales out of the records to pay less tax. [1]

7. Copperfield Tiles is owned by Sumaira. Her draft profit is 42,000 after a 5,000 family wedding gift, paid from the business bank account, was debited to staff training. She tells the accountant, Omar Dar, to leave it so her tax is lower.

(a) Calculate the profit for the year after correct treatment. [2] (b) Name the concept involved and state the correct treatment of the 5,000. [2] (c) Identify two fundamental principles Omar would breach if he agreed, with a reason for each. [2]

8. (a) Explain the need for an ethical framework in accounting. [2] (b) Explain the significance to society of accountants applying an ethical framework. [2]

9. Mulberry Courier keeps sales and purchases on spreadsheets and writes its cash book by hand. All its files are on one office computer with no copy.

(a) Explain what is meant by using digital applications for part of the accounting records. [2] (b) State two risks of storing the data this way. [2] (c) Suggest two ways the business could store its data more sustainably. [2] (d) The owner considers a cloud service for a second copy. State one advantage and one disadvantage of it. [2]

10. Greenacre Pharmacy has a draft profit for the year ended 31 December 2028 of 58,200. These have not been adjusted.

1. The owner’s gym membership of 720 was paid by the business and debited to sundry expenses.
2. Insurance of 1,800 was paid on 1 August 2028 for 12 months and charged in full.
3. A customer’s debt of 650 is irrecoverable and has not been written off.
4. Closing inventory includes items at cost 1,260 with a net realisable value of 840.
5. Telephone costs of 310 for December are unpaid and unrecorded.

(a) Calculate the corrected profit for the year, showing the effect of each adjustment. [6] (b) The owner says the draft profit can stand because the differences are small. Evaluate whether materiality supports this view. [2]

Answers

1. (a) (i) Debit Bank, credit Capital. [1] (ii) Debit Equipment (or shop fittings), credit Trade payables. [1] (iii) Debit Trade payables, credit Bank. [1] (b) Duality. [1] [4] Examiner insight: Name both accounts in each entry; a debit without its credit leaves the second half unanswered.

2. (a) Income for 2028 is 4,500 x 1/3 = 1,500. [1] Income received in advance is 4,500 - 1,500 = 3,000. [1] (b) 2,640 - 420 + 690 [1] = 2,910. [1] (c) Matching / accruals. [1] [5] Examiner insight: Show removing last year’s bill and adding the unpaid bill as separate steps, so the method is visible if the arithmetic slips.

3. (a) Compost: 50 x 5.20 = 260. [1] Pots: cost 80 x 3.50 = 280 is lower than 368, so 280. [1] Gloves: 30 x 2.50 = 75. [1] Total 260 + 280 + 75 = 615. [1] (b) At cost the total is 320 + 280 + 120 = 720, so profit is 105 lower. [1] Prudence. [1] [6] Examiner insight: Compare cost and net realisable value line by line before totalling; two overall totals hide that the pots stay at cost.

4. (a) The hole punch is too small to affect decisions, so it is charged as an expense. [1] The machine is large enough to matter, so it is a non-current asset and is depreciated. [1] (b) No, the machine stays at cost less depreciation. [1] Historic cost. [1] (c) The skill cannot be reliably measured in money. [1] Money measurement. [1] [6] Examiner insight: “It is cheap” says less than “the amount would not change a user’s decision”.

5. (a) The same method is used each year. [1] So a difference in profit reflects trading, not a change of method. [1] (b) The going concern assumption no longer holds. [1] The expected sale value of 1,900 is more relevant than the net book value of 5,200, a difference of 3,300. [1] [4] Examiner insight: In part (b) name the assumption and say what value replaces the old one.

6. (a) Confidentiality. [1] (b) Integrity. [1] (c) Professional competence and due care. [1] (d) Objectivity. [1] (e) Professional behaviour. [1] [5] Examiner insight: Match the principle to the central failing; in (e) the breach of tax law points most directly to professional behaviour.

7. (a) 42,000 + 5,000 [1] = 47,000. [1] (b) Business entity. [1] It is private spending, so it is recorded as drawings and removed from expenses. [1] (c) Professional behaviour, because helping to reduce tax by false records breaks the law. [1] Integrity, because Omar would knowingly produce misleading figures. [1] [6] Examiner insight: Give each principle its own reason tied to the case, not one shared sentence.

8. (a) Others rely on accounting information that they cannot check for themselves. [1] Accountants face pressure and handle confidential information, so a standard is set in advance. [1] (b) Honest figures support correct tax collection for public services. [1] They also support sound lending and investment and keep trust in financial information. [1] [4] Examiner insight: “Society” points beyond the business; the owner’s profit alone does not answer (b).

9. (a) Some records, such as sales and purchases, are kept on spreadsheets. [1] Others, such as the cash book, are still kept manually. [1] (b) Any two: data lost through fire, theft or computer failure [1]; unauthorised access or hacking [1]; accidental deletion; cost of rebuilding records. (c) Any two: print less or send invoices electronically [1]; avoid unnecessary duplicate copies; dispose of old devices responsibly after data is removed [1]. (d) Advantage, for example access from anywhere or safety from fire at the office [1]. Disadvantage, for example needs internet or a continuing charge, or depends on the provider [1]. [8] Examiner insight: Apply points to the business described; “not secure” is vaguer than “depends on the provider”.

10. (a) Draft profit 58,200.

1. Business entity: + 720. [1]
2. Used 1,800 x 5/12 = 750; prepaid 1,050: + 1,050. [1]
3. Debt written off: - 650. [1]
4. Inventory 1,260 to 840: - 420. [1]
5. Telephone accrued: - 310. [1] Corrected profit 58,200 + 720 + 1,050 - 650 - 420 - 310 = 58,590. [1] (b) Materiality simplifies small items but does not let known errors stay. [1] The gym membership is private whatever its size, and the others are known adjustments, so the draft should be corrected. [1] [8] Examiner insight: In an evaluation, give a judgement and a reason; repeating the adjustments does not answer the question.

Where marks are usually lost

• Naming a concept without applying it to the figures in the question.
• Counting the wrong number of months on a prepayment or income received in advance.
• Totalling inventory before comparing cost and net realisable value line by line.
• Naming two principles with a single shared explanation.

Next steps

• Re-read the study guide, then the revision notes.
• Tick off the checklist and return to the course hub.
• Try the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

How do you get full marks on an accounting concept question? Name the concept, apply it to the figures in the question and say what it does to profit or to the statement of financial position. Naming a concept without applying it is the most common way to lose marks in Cambridge IGCSE Accounting (0452).

How do you calculate income received in advance? Work out the monthly amount, count the months that fall in the current year as revenue, and treat the remaining months as a liability. Counting the wrong number of months is a common error.

Should inventory be compared with net realisable value in total or line by line? Compare cost with net realisable value for each line of inventory and take the lower figure for each line. Totalling inventory before comparing can hide a loss on one item behind a gain on another.

How do you answer a question asking for two ethical principles? Give each principle its own explanation linked to the scenario, for example integrity for knowingly misleading figures and objectivity for giving way to pressure. Naming two principles with a single shared explanation loses marks.

Official syllabus

Cambridge IGCSE Accounting 0452 syllabus for exams in 2027, 2028 and 2029, version 1, published by Cambridge University Press & Assessment (Cambridge International Education). Sections 7.1 to 7.3.