A-LevelAccountingBasic Accounting ConceptsMay/June 2012Paper 1 Q41 Mark
A business buys a machine on hire purchase for $50 000. Although it will not own the machine until it has paid the final instalment, it has made the following entries: debit credit Machinery account $50 000 Bank account $5 000 Finance company account $45 000 Which accounting principle has been applied?
Agoing concern
Bmatching
Cprudence
Dsubstance over form
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of basic accounting concepts 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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