A-LevelAccountingErrors and Suspense AccountsFeb/Mar 2023Paper 1 Q51 Mark

A business has incorrectly recorded a vehicle purchase as a vehicle repair. The business does not charge depreciation on assets in the year of purchase. What is the effect of this error on the financial statements?

Q: What topic does this question test?

This question tests Errors and Suspense Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Astatement of profit or loss: profit overstated; statement of financial position: assets overstated

Bstatement of profit or loss: profit overstated; statement of financial position: assets understated

Cstatement of profit or loss: profit understated; statement of financial position: assets overstated

Dstatement of profit or loss: profit understated; statement of financial position: assets understated

✓ Correct Answer

The correct answer is D: statement of profit or loss: profit understated; statement of financial position: assets understated

📋 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 A-Level Accounting Question

Topic

This multiple-choice question tests Errors and Suspense Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2023 examination, Paper 1 Variant 2.

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