A-LevelAccountingDepreciation and Non-Current AssetsOct/Nov 2020Paper 1 Q41 Mark

A company had a non-current asset which cost $370000. The asset had a 10-year useful life and an estimated residual value of $20000. A full year's charge for depreciation is made in every year of use. After four years the asset was sold. The loss on disposal was $30000 and disposal costs were $10000. What were the sale proceeds?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is D: $210000.

Q: What topic does this question test?

This question tests Depreciation and Non-Current Assets in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$192000

B$200 000

C$202 000

D$210000

✓ Correct Answer

The correct answer is D: $210000

📋 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 Depreciation and Non-Current Assets in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2020 examination, Paper 1 Variant 2.

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