A-LevelAccountingProvisions and Bad DebtsMay/June 2020Paper 1 Q91 Mark
A business provides the following information. [Table with 'trade receivables' $ and 'provision for doubtful debts' $ for 31 December 2018 ($46200, $1386) and 31 December 2019 ($48100, $1924)] Which statement must be correct?
AThe rate of provision for doubtful debts has decreased.
BThe rate of provision for doubtful debts has increased.
CThe value of irrecoverable debts incurred has decreased.
DThe value of irrecoverable debts incurred has increased.
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of provisions and bad debts 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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