A-LevelAccountingAccruals and PrepaymentsOct/Nov 2020Paper 1 Q101 Mark

What is the effect on profit for the year and net assets when accrued expenses are understated?

Q: What topic does this question test?

This question tests Accruals and Prepayments in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Aprofit for the year overstated, net assets overstated

Bprofit for the year overstated, net assets understated

Cprofit for the year understated, net assets overstated

Dprofit for the year understated, net assets understated

✓ Correct Answer

The correct answer is A: profit for the year overstated, net assets 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 Accruals and Prepayments 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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