A-LevelAccountingFundamental Accounting Concepts & PrinciplesOct/Nov 2019Paper 1 Q121 Mark
A sole trader's personal expenses had been paid out of the business bank account and included in his income statement. What was the effect of this on the profit and capital?
Aprofit: no effect, capital: no effect
Bprofit: no effect, capital: overstated
Cprofit: understated, capital: no effect
Dprofit: understated, capital: understated
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of fundamental accounting concepts & principles 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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