A-LevelAccountingDepreciation and Disposal of Non-Current AssetsOct/Nov 2021Paper 1 Q41 Mark

A business purchased a non-current asset for $500000 with an expected life of 20 years. After that time it was expected to be sold for $100000. It was depreciated using the straight-line method. The non-current asset was sold after 10 years for $120000 with selling costs of $10000. What was the loss on disposal?

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

The correct answer is D: $190000.

Q: What topic does this question test?

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

A$130000

B$140000

C$180000

D$190000

✓ Correct Answer

The correct answer is D: $190000

📋 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 Disposal of 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 2021 examination, Paper 1 Variant 2.

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