A-LevelAccountingAccruals and PrepaymentsFeb/Mar 2016Paper 1 Q111 Mark
A business makes up its financial statements to 30 April each year. Included in the ledger account balances on 1 May 2014 was insurance (debit) $800. On 31 October 2014 an insurance premium of $2100 was paid for the year ended 31 October 2015. Which amount was charged for insurance in the income statement for the year ended 30 April 2015?
A$1050
B$1850
C$2100
D$2900
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of accruals and prepayments 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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