A-LevelAccountingAnalysis and Interpretation of Financial StatementsMay/June 2024Paper 1 Q221 Mark

A business provided the following information at 31 March. inventories 225 000 trade receivables 785 000 cash and cash equivalents 15000 trade payables 365 000 other payables 85 000 What is the acid test ratio?

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

The correct answer is A: 1.78:1.

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.

A1.78:1

B2.19:1

C2.28:1

D2.81:1

✓ Correct Answer

The correct answer is A: 1.78:1

📋 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 2024 examination, Paper 1 Variant 2.

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