A-LevelAccountingNon-Current Assets and DepreciationOct/Nov 2022Paper 1 Q41 Mark
At 31 December 2021 a business had a non-current asset with a net book value of $18000. It had been purchased during the year ended 31 December 2020. Depreciation is charged at a rate of 25% per annum using the reducing balance method. A full year's depreciation is charged in the year of purchase. What was the original cost of the non-current asset?
A$22500
B$24000
C$27000
D$32000
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of non-current assets and depreciation 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep