O-LevelAccountingThe fundamentals of accountingOct/Nov 2020Paper 1 Q41 Mark

What does the owner's equity consist of?

Q: What topic does this question test?

This question tests The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Athe amount of money in the business bank account

Bthe amount owed by the business to the owner

Cthe total of the assets owned by the business

Dthe total of the current assets less the current liabilities

✓ Correct Answer

The correct answer is B: the amount owed by the business to the owner

📋 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 The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2020 examination, Paper 1 Variant 2.

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