O-LevelAccountingAccounting principles and policiesOct/Nov 2023Paper 1 Q171 Mark

What is a reason for charging depreciation on a non-current asset?

Q: What topic does this question test?

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

Ato build up a fund of money that can be used to replace the asset

Bto charge the cost of the asset over the years which benefit from its use

Cto ensure that profit is not understated in the income statement

Dto show the asset at its market value in the statement of financial position

✓ Correct Answer

The correct answer is B: to charge the cost of the asset over the years which benefit from its use

📋 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 Accounting principles and policies 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 3.

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