A-LevelAccountingAccruals and PrepaymentsMay/June 2020Paper 1 Q101 Mark
On 1 March a company has prepaid $3600 for 12 months' travel costs. It also has an outstanding hotel bill of $180. During March it pays the outstanding hotel bill and a further $700 for airline tickets for the month. At 31 March it has an outstanding hotel bill of $220. What is the correct cost of travel in the income statement for March?
A$920
B$1220
C$1400
D$4520
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of accruals and prepayments 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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