A-LevelAccountingPreparation of financial statements9706/12 · May/June 2020 · 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

B: $1220

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2020 Paper 1 Variant 2, question 10.

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