A-LevelAccountingInterpretation of Financial StatementsFeb/Mar 2025Paper 1 Q201 Mark

Sunil was reviewing the statement of financial position of a business. The statement of profit or loss was not available. Why was Sunil interested in the current assets of the business?

Q: What topic does this question test?

This question tests Interpretation of Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Ato assess its future prospects

Bto be able to calculate efficiency ratios

Cto discover if it is profitable

Dto see if it is able to pay debts as they fall due

✓ Correct Answer

The correct answer is D: to see if it is able to pay debts as they fall due

📋 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.

🔒

Unlock the Examiner's Analysis

Join thousands of Cambridge students already using Oracle Prep

About This A-Level Accounting Question

Topic

This multiple-choice question tests Interpretation of Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2025 examination, Paper 1 Variant 2.

Practice on Oracle Prep

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers across 29 subjects.