O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2021 · Q141 Mark

Two companies each purchased a motor vehicle for $10000 at the beginning of year 1. Company G used the straight-line method of depreciation at a rate of 15% per annum, while Company H used the reducing balance method at a rate of 20% per annum. What was the difference in the depreciation charge between the two companies for year 2?

A$100 greater for G

B$100 greater for H

C$500 greater for G

D$500 greater for H

✓ Correct answer

B: $100 greater for H

Oracle Prep sorts past-paper questions by topic, so you can drill Accounting procedures and see which topics are most likely to come up next.

Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 14.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content