A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2016 · 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

B: $1850

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2016 Paper 1 Variant 2, question 11.

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