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O-LevelAccountingAccounting principles and policiesOct/Nov 2021Paper 1 Q131 Mark

A trader has purchased new business premises. What are examples of capital expenditure? 1 cost of heating and lighting the new premises 2 cost of purchasing the new premises 3 legal costs of purchasing the new premises 4 office furniture purchased for use in the new premises

A1 and 2 only
B1, 2 and 4
C2, 3 and 4
D3 and 4 only

✓ 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...

📋 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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About This O-Level Accounting Question

This multiple-choice question appeared in the Cambridge O-Level Accounting (7707) Oct/Nov 2021 examination, Paper 1 Variant 2. It tests the topic of Accounting principles and policies and is worth 1 mark.

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