O-LevelAccountingThe fundamentals of accountingOct/Nov 2021Paper 1 Q341 Mark

Why would a supplier be interested in the financial statements of a credit customer?

Q: What topic does this question test?

This question tests The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Ato know if the customer can pay what he owes

Bto know the amount owed by trade receivables

Cto know the profit for the year

Dto know the value of the inventory

✓ Correct Answer

The correct answer is A: to know if the customer can pay what he 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 The fundamentals of accounting 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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