O-LevelAccountingPreparation of financial statementsOct/Nov 2018Paper 1 Q211 Mark
At the end of the financial year a sports club owed rent for the clubhouse. Some members had paid their subscriptions in advance for the following year. How would these items be recorded in the club's statement of financial position?
Arent owing current asset subscriptions paid in advance current asset
Brent owing current asset subscriptions paid in advance current liability
Crent owing current liability subscriptions paid in advance current asset
Drent owing current liability subscriptions paid in advance current liability
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of preparation of financial statements within the Accountingsyllabus. The examiner's mark scheme requires...
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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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