O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2025 · Q291 Mark

Gem has been in business for many years. On 1 March, Gem purchased a new factory. On that date, he paid three months' insurance on his factory, totalling $900. What should Gem enter for insurance in his statement of financial position on 31 March?

A$300 in current assets

B$300 in current liabilities

C$600 in current assets

D$600 in current liabilities

✓ Correct answer

C: $600 in current assets

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2025 Paper 1 Variant 2, question 29.

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