O-LevelAccountingAccounting principles and policiesOct/Nov 2020Paper 1 Q121 Mark

A trader uses the reducing balance method of depreciation. What effect will this have over the life of the non-current asset?

Q: What topic does this question test?

This question tests Accounting principles and policies in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Adepreciation charged evenly over the years

Bmore depreciation charged in the early years

Cmore depreciation charged in the later years

Dthe non-current asset being revalued each year

✓ Correct Answer

The correct answer is B: more depreciation charged in the early years

📋 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 principles and policies 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 3.

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