A-LevelAccountingAdjustments to Financial StatementsOct/Nov 2022Paper 1 Q81 Mark
A draft statement of financial position for a business showed total net assets of $600000. The following items were then discovered. 1 A long-term loan for $10000 had not been recorded. This was taken out on the last day of the financial year. 2 Closing inventory had been overstated by $20000. 3 Depreciation had been understated by $15000. What is the correct total net assets value?
A$555000
B$565000
C$595 000
D$605 000
✓ Correct Answer
The correct answer is B: $565000
📋 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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