A-LevelAccountingFinancial Statements of Sole TradersOct/Nov 2021Paper 1 Q111 Mark
A trader's income statement recorded sales, $10000, and cost of sales, $7070. The trader had taken goods for his own use during the year, cost $280, selling price $410, but had omitted to record this. What effect did the omission have on the gross margin?
A2.8% overstated
B2.8% understated
C4.1% overstated
D4.1% understated
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of financial statements of sole traders 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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