A-LevelAccountingAnalysis and Interpretation of Financial StatementsFeb/Mar 2020Paper 1 Q191 Mark
A company's results for a year showed credit sales of $500000. The trade receivables collection period was 73 days. In the next year, credit sales were expected to be $550000 and the collection period was not expected to change. What is the expected percentage change in trade receivables?
Adecrease of 10%
Bincrease of 10%
Cdecrease of 20%
Dincrease of 20%
✓ Correct Answer
The correct answer is B: increase of 10%
📋 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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