O-LevelAccountingAccounting proceduresOct/Nov 2021Paper 1 Q91 Mark

Ann maintains a petty cash book using the imprest system. Which statement is not correct?

Q: What topic does this question test?

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

Apetty cash book can be maintained by a junior member of staff.

BAt any time petty cash vouchers plus the petty cash balance are equal to the imprest amount.

CThe chief cashier is not asked continually for small sums of money.

DThe number of entries in the cash book increases because of the large number of small cash payments.

✓ Correct Answer

The correct answer is D: The number of entries in the cash book increases because of the large number of small cash payments.

📋 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 procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2021 examination, Paper 1 Variant 2.

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