A-LevelAccountingAnalysis and Interpretation of Financial StatementsOct/Nov 2021Paper 1 Q191 Mark

The non-current asset turnover of a business improved between 2020 and 2021, even though the net revenue was the same for both years. What caused the improvement in the ratio?

Q: What topic does this question test?

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

Areduction in the level of irrecoverable debts being incurred

Ban upwards revaluation of the premises at the year end

Cdepreciation charged being higher than the cost of new non-current assets

Dpurchases of new non-current assets being greater than disposals

✓ Correct Answer

The correct answer is C: depreciation charged being higher than the cost of new non-current assets

📋 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 Analysis and Interpretation of Financial Statements 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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