O-LevelAccountingThe fundamentals of accountingOct/Nov 2024Paper 1 Q21 Mark

A trader bought new fixtures. He paid half the purchase price in cash and agreed to pay the balance at a later date. How does this purchase affect the accounting equation?

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.

Aassets: decrease, owner's equity: decrease, liabilities: no effect

Bassets: decrease, owner's equity: no effect, liabilities: increase

Cassets: increase, owner's equity: decrease, liabilities: increase

Dassets: increase, owner's equity: no effect, liabilities: increase

✓ Correct Answer

The correct answer is D: assets: increase, owner's equity: no effect, liabilities: increase

📋 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 2024 examination, Paper 1 Variant 2.

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