O-LevelAccountingAccounting principles and policiesOct/Nov 2020Paper 1 Q321 Mark
Zak has depreciated his machinery at the rate of 20% per annum using the straight-line method. At 31 December 2018 the statement of financial position included: $ machinery at cost 30 000 depreciation to date 12000 18000 On 31 December 2019 Zak was considering calculating the annual depreciation at 20% per annum on the net book value of the machinery. Which statement is correct?
Adepreciation would be $3600 applying the consistency principle
Bdepreciation would be $3600 applying the prudence principle
Cdepreciation would be $6000 applying the consistency principle
Ddepreciation would be $6000 applying the prudence principle
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of accounting principles and policies 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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