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?

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

The correct answer is B: $1220.

Q: What topic does this question test?

This question tests Accruals and Prepayments in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$920

B$1220

C$1400

D$4520

✓ Correct Answer

The correct answer is B: $1220

📋 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 Accruals and Prepayments in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2020 examination, Paper 1 Variant 2.

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