O-LevelAccountingAnalysis and interpretationOct/Nov 2024Paper 1 Q321 Mark

The trade payables turnover of a business is 36 days. What do these 36 days represent?

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.

Athe average number of days before the business purchases further goods on credit

Bthe average number of days taken by the business to pay its credit suppliers

Cthe average number of days the business is allowed by credit suppliers to pay for goods

Dthe average number of days the business takes to sell goods purchased on credit

✓ Correct Answer

The correct answer is A: the average number of days before the business purchases further goods on credit

📋 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 2024 examination, Paper 1 Variant 3.

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