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?

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

The correct answer is B: 2.8% understated.

Q: What topic does this question test?

This question tests Financial Statements of Sole Traders in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A2.8% overstated

B2.8% understated

C4.1% overstated

D4.1% understated

✓ Correct Answer

The correct answer is B: 2.8% understated

📋 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 Financial Statements of Sole Traders 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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