A-LevelAccountingFinancial StatementsMay/June 2011Paper 1 Q121 Mark
Which transaction would increase the current assets of a business?
Apaying invoices $950, after receiving $50 cash discount
Bpurchasing a machine on credit for $1200
Cpurchasing inventory for $1100 cash and selling it on credit for $1500
Dselling inventory with an original cost of $800 at below cost price
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of financial statements within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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