A-LevelAccountingCapital and Revenue Expenditure/IncomeFeb/Mar 2025Paper 1 Q51 Mark
The following costs for a business relate to a newly purchased machine. 1 alterations to the factory building to install the machine 2 payment of insurance for the new machine 3 the final purchase price of the machine agreed with the supplier 4 the price of the machine before the discount from the supplier Which costs would be treated as capital expenditure?
A1, 2 and 3
B1 and 3 only
C2 and 3 only
D2 and 4
✓ Correct Answer
The correct answer is B: 1 and 3 only
📋 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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