O-LevelAccountingAccounting proceduresOct/Nov 2017Paper 1 Q181 Mark

Tareq started a business on 1 October 2016. He provided the following information. On 28 November 2016 he paid an insurance premium, $1800, for the year starting 1 December 2016. On 31 December 2017 he paid advertising costs for 1 July to 31 December 2017 totalling $2400. What was shown in the statement of financial position at 30 September 2017?

Q: What topic does this question test?

This question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Aother receivables: advertising $400, other payables: insurance $300

Bother receivables: advertising $1200, other payables: insurance $300

Cother receivables: insurance $300, other payables: advertising $400

Dother receivables: insurance $300, other payables: advertising $1200

✓ Correct Answer

The correct answer is D: other receivables: insurance $300, other payables: advertising $1200

📋 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 O-Level Accounting Question

Topic

This multiple-choice question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2017 examination, Paper 1 Variant 1.

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