A-LevelAccountingFinancial Accounting (Statement of Financial Position)May/June 2013Paper 1 Q171 Mark
A business sells some inventory for $80 on credit. This originally cost $50. How does this affect the statement of financial position?
Acurrent assets decrease by $30, owner's capital decreases by $30
Bcurrent assets decrease by $30, owner's capital increases by $30
Ccurrent assets increase by $30, owner's capital decreases by $30
Dcurrent assets increase by $30, owner's capital increases by $30
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of financial accounting (statement of financial position) 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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