O-LevelAccountingAccounting proceduresOct/Nov 2021Paper 1 Q41 Mark
During her first financial year, a trader paid $1800 for insurance and $3200 for rent. At the end of the financial year, she transferred insurance of $1500 and rent of $3600 to the income statement. What do the balances remaining on the accounts at the end of the financial year represent? [Figure showing table with insurance account and rent account columns]
Aaccrued expense accrued expense
Baccrued expense prepaid expense
Cprepaid expense accrued expense
Dprepaid expense prepaid expense
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of accounting procedures within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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