A-LevelAccountingInventory ValuationFeb/Mar 2019Paper 1 Q111 Mark

A company undervalued the closing inventory for its current accounting period. How did this affect gross profit?

Q: What topic does this question test?

This question tests Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Acurrent period no effect, following period no effect

Bcurrent period understated, following period overstated

Ccurrent period understated, following period no effect

Dcurrent period understated, following period understated

✓ Correct Answer

The correct answer is B: current period understated, following period overstated

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2019 examination, Paper 1 Variant 2.

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