A-LevelAccountingNon-current Assets and DepreciationFeb/Mar 2022Paper 1 Q31 Mark
On 1 July 2021, Tim bought a delivery van for $10000. He paid an additional $900 to have racks fitted inside, and $800 for a year's insurance. Tim provides for depreciation at the rate of 10% per annum. A full year's depreciation is charged in the year of acquisition. What was the total for expenses recorded in Tim's income statement in respect of the van for the year ended 30 September 2021?
A$1290
B$1690
C$2100
D$2500
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of non-current assets and depreciation within the Accountingsyllabus. The examiner's mark scheme requires...
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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...
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