A-LevelAccountingFundamentals of AccountingMay/June 2010Paper 1 Q51 Mark
A business obtained a machine by means of a hire purchase agreement. It showed the machine in its balance sheet at the cash price of $30 000 although only $10 000 has been repaid. Which accounting principle is involved?
Aaccruals
Bmateriality
Cprudence
Dsubstance over form
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of fundamentals of accounting 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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