A-LevelAccountingAnalysis and communication of accounting information9706/12 · Feb/Mar 2019 · Q191 Mark

Which item would result in a decrease in the expenses to revenue ratio?

Aaccrual for telephone

Bincrease in provision for doubtful debts

Cprepayment for rent and rates

Dthe return of goods sold

✓ Correct answer

C: prepayment for rent and rates

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2019 Paper 1 Variant 2, question 19.

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