O-LevelAccountingPreparation of financial statementsOct/Nov 2021Paper 1 Q251 Mark

The value of Thato's work in progress increased during the year. This was recorded in his financial statements. How did this affect the cost of production and the cost of sales?

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.

Acost of production: decreased, cost of sales: decreased

Bcost of production: decreased, cost of sales: no effect

Ccost of production: increased, cost of sales: increased

Dcost of production: increased, cost of sales: no effect

✓ Correct Answer

The correct answer is A: cost of production: decreased, cost of sales: decreased

📋 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 3.

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