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?

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

The correct answer is D: $32000.

Q: What topic does this question test?

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

A$22500

B$24000

C$27000

D$32000

✓ Correct Answer

The correct answer is D: $32000

📋 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 Non-Current Assets and Depreciation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2022 examination, Paper 1 Variant 2.

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