A-LevelAccountingAnalysis and Interpretation of Financial StatementsMay/June 2010Paper 1 Q231 Mark

The following information is given about four products. inventory (stock) turnover (per annum), average inventory (stock) in units, mark up on cost % Product A: 8 times, 1000, 15 Product B: 6 times, 1000, 30 Product C: 7 times, 1000, 25 Product D: 10 times, 1000, 20 Which product makes the most gross profit?

Q: What topic does this question test?

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

AProduct A with inventory turnover 8 times per annum, average inventory 1000 units, mark up on cost 15%

BProduct B with inventory turnover 6 times per annum, average inventory 1000 units, mark up on cost 30%

CProduct C with inventory turnover 7 times per annum, average inventory 1000 units, mark up on cost 25%

DProduct D with inventory turnover 10 times per annum, average inventory 1000 units, mark up on cost 20%

✓ Correct Answer

The correct answer is D: Product D with inventory turnover 10 times per annum, average inventory 1000 units, mark up on cost 20%

📋 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 Analysis and 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 May/June 2010 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.