A-LevelAccountingInterpretation of Financial StatementsMay/June 2012Paper 1 Q171 Mark
A business finds that it is unable to pay its trade payables because of a poor cash flow. What should it do to improve its cash flow?
Afactor its trade receivables
Bincrease its trade receivables
Cincrease its inventory
Drepay its overdraft
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of interpretation 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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