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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: diminishing (reducing) balance method for 3; revaluation method for 1; straight-line method for 2

📋 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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About This O-Level Accounting Question

Topic

This multiple-choice question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2019 examination, Paper 1 Variant 2.

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