A-LevelAccountingCapital and Revenue ExpenditureFeb/Mar 2016Paper 1 Q101 Mark
A computer used for demonstration to customers was treated as capital expenditure. At the end of the year a customer purchased the computer in the ordinary course of business. Which entries are needed to adjust the cost of sales? account to be debited account to be credited A inventory demonstration equipment B purchases demonstration equipment C sales inventory D selling expenses sales
Ainventory demonstration equipment
Bpurchases demonstration equipment
Csales inventory
Dselling expenses sales
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of capital and revenue expenditure within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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