A-LevelAccountingAnalysis and Interpretation of Financial StatementsFeb/Mar 2020Paper 1 Q201 Mark
A business has the following current assets and current liabilities. trade receivables 6000 bank overdraft 1500 cash in hand 50 trade payables 5050 The only other item in the working capital is inventory. The current ratio is 2:1. What is the value of the inventory?
A$2550
B$4050
C$5550
D$7050
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of analysis and interpretation 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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