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?

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

The correct answer is B: $1850.

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.

A$1050

B$1850

C$2100

D$2900

✓ Correct Answer

The correct answer is B: $1850

📋 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 Feb/Mar 2016 examination, Paper 1 Variant 2.

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