O-LevelAccountingAnalysis and interpretationOct/Nov 2017Paper 1 Q281 Mark

In year 1, Sam's gross profit was calculated as follows. $ revenue $180000 opening inventory 6000 purchases 118000 124000 closing inventory (4000) 120000 gross profit 60000 In year 2, the amount of revenue and gross profit was the same as in year 1 but the purchases increased to $124000. What was the rate of turnover of inventory in year 2?

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

The correct answer is A: 20 times.

Q: What topic does this question test?

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

A20 times

B21 times

C24 times

D30 times

✓ Correct Answer

The correct answer is A: 20 times

📋 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 Analysis and interpretation 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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