O-LevelAccountingPreparation of financial statementsOct/Nov 2021Paper 1 Q191 Mark

John maintains a full set of accounting records. Why does he also prepare a statement of financial position?

Q: What topic does this question test?

This question tests Preparation of financial statements in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Ato calculate the profit for the year

Bto check if assets equal capital plus liabilities

Cto show the transactions which took place during the year

Dto summarise what the business owns and what it owes

✓ Correct Answer

The correct answer is D: to summarise what the business owns and what it owes

📋 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 Preparation of financial statements 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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