A-LevelAccountingInventory ValuationFeb/Mar 2021Paper 1 Q121 Mark
At the end of his first year of trading, the trader lost all of his inventory in a fire. He knows the values of sales and purchases and wishes to calculate the value of the inventory lost. Which ratio should he use?
Agross margin
Bprofit margin
Ctrade payables turnover
Dtrade receivables turnover
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of inventory valuation 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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