A-LevelAccountingAnalysis and Interpretation of Financial StatementsMay/June 2019Paper 1 Q201 Mark

On 1 January 2018 a business expected to have sales for the year ended 31 December 2018 of $450 000. Its non-current assets at that date were $306000. On 1 July 2018 it purchased new machinery at a cost of $180000, in order to increase its sales by an extra $20000 each month. What was the rate of non-current asset turnover in 2018? (Ignore depreciation.)

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

The correct answer is A: 1.17 times.

Q: What topic does this question test?

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

A1.17 times

B1.42 times

C1.44 times

D1.74 times

✓ Correct Answer

The correct answer is A: 1.17 times

📋 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 Analysis and Interpretation of 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 2019 examination, Paper 1 Variant 2.

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