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O-LevelAccountingAccounting proceduresOct/Nov 2019Paper 1 Q161 Mark

Which methods of depreciation are used for these non-current assets? 1 a non-current asset consisting of a number of small items 2 a non-current asset which gives the same benefit in each year of use 3 a non-current asset which gives more benefit in the early years of its use

Adiminishing (reducing) balance method for 1; revaluation method for 3; straight-line method for 2
Bdiminishing (reducing) balance method for 2; revaluation method for 1; straight-line method for 3
Cdiminishing (reducing) balance method for 2; revaluation method for 3; straight-line method for 1
Ddiminishing (reducing) balance method for 3; revaluation method for 1; straight-line method for 2

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of accounting procedures 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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About This O-Level Accounting Question

This multiple-choice question appeared in the Cambridge O-Level Accounting (7707) Oct/Nov 2019 examination, Paper 1 Variant 2. It tests the topic of Accounting procedures and is worth 1 mark.

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