O-LevelAccountingAnalysis and interpretationOct/Nov 2023Paper 1 Q321 Mark

A business has the following assets and liabilities. $ inventory 2000 trade receivables 4000 trade payables 1100 bank overdraft 3100 The owner plans to pay some of his own funds into the business bank account to increase the current ratio to 2: 1. How much does he need to pay into the business bank account to achieve this?

Q: What is the correct answer to this O-Level Accounting question?

The correct answer is B: $1200.

Q: What topic does this question test?

This question tests Analysis and interpretation in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

A$900

B$1200

C$1900

D$2200

✓ Correct Answer

The correct answer is B: $1200

📋 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 Analysis and interpretation in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2023 examination, Paper 1 Variant 2.

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