A-LevelAccountingFinancial StatementsMay/June 2014Paper 1 Q171 Mark

A business has settled a legal dispute with a customer and expects to pay him $10000 before the end of the next financial year. Which heading is this amount included under in the company's statement of financial position for this financial year?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is B: current liabilities.

Q: What topic does this question test?

This question tests Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Acapital and reserves

Bcurrent liabilities

Cnon-current assets

Dnon-current liabilities

✓ Correct Answer

The correct answer is B: current liabilities

📋 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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About This A-Level Accounting Question

Topic

This multiple-choice question tests Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2014 examination, Paper 1 Variant 2.

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