O-LevelAccountingPreparation of financial statementsOct/Nov 2018Paper 1 Q231 Mark
During the financial year, a manufacturing company's payments included the following. purchase of a new machine running costs of the machine Where would these appear in the financial statements prepared at the end of the financial year?
Amachine: manufacturing account; running costs of machine: income statement
Bmachine: manufacturing account; running costs of machine: manufacturing account
Cmachine: statement of financial position; running costs of machine: income statement
Dmachine: statement of financial position; running costs of machine: manufacturing account
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of preparation 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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