A-LevelAccountingInterpretation of Financial StatementsMay/June 2012Paper 1 Q181 Mark
For some years a business has given 2% cash discount to its customers and lost 3% of its inventory to pilferage by staff. On 1 January, the business changed the rate of cash discount to 5% and introduced a new inventory control system that stopped the pilferage. Which effect do these changes have on the gross profit to sales ratio? change in cash discount new inventory control system decrease no effect increase no effect no effect decrease no effect increase
Adecrease no effect
Bincrease no effect
Cno effect decrease
Dno effect increase
✓ Correct Answer
The correct answer is D: no effect increase
📋 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.
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