O-LevelAccountingThe fundamentals of accountingOct/Nov 2018Paper 1 Q41 Mark

The bank agreed to allow Dan an overdraft with a limit of $500. What did this mean?

Q: What topic does this question test?

This question tests The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Asum of $500 would be transferred into Dan's account by the bank.

BAll cheques issued by Dan would be paid by the bank.

CCheques issued by Dan would be paid by the bank provided the account was not overdrawn by more than $500.

DOnly cheques issued by Dan for less than $500 would be paid by the bank if there was not enough money in the account.

✓ Correct Answer

The correct answer is A: sum of $500 would be transferred into Dan's account by the bank.

📋 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 The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2018 examination, Paper 1 Variant 1.

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