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A-LevelAccountingNon-current Assets and DepreciationFeb/Mar 2021Paper 1 Q31 Mark

Which item is not included as part of the capital cost of a new machine?

Acost of delivering the machine to the factory
Bcost of installing the new machine
Cinterest on a loan used to buy the machine
Dinvoice price of the machine

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of non-current assets and depreciation 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 A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Feb/Mar 2021 examination, Paper 1 Variant 2. It tests the topic of Non-current Assets and Depreciation and is worth 1 mark.

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