A-LevelAccountingFinancial StatementsOct/Nov 2023Paper 1 Q151 Mark
The owner of a trading business prepared draft financial statements for the year ended 31 December. It was then discovered that the following transactions occurring during the year had not been recorded. 1 A cheque for $500 had been received for commission earned. 2 Cash amounting to $2900 was received for a sale of goods which had cost $3000. 3 Inventory costing $5000 had been taken from the business by the owner for personal use. 4 Non-current assets with a carrying value of $6500 had been sold for $7000 cash. Which transactions will affect both the gross profit for the year and the total value of net assets on the statement of financial position?
A1 and 2
B1 and 4
C2 and 3
D3 and 4
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of financial statements 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...
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