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: prepaid expense accrued expense
📋 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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