A-LevelAccountingDepreciation and Disposal of Non-Current AssetsOct/Nov 2012Paper 1 Q181 Mark

A company uses the straight-line method of depreciation for all its non-current assets. On 1 January the company bought machinery on hire purchase. The cash price was $115 000 and the interest for the year is $19 550. The estimated useful life of the machinery is five years with no residual value. What is the charge for depreciation for the year ended 31 December?

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

The correct answer is B: $23 000.

Q: What topic does this question test?

This question tests Depreciation and Disposal of Non-Current Assets in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$19 090

B$23 000

C$26 910

D$42 550

✓ Correct Answer

The correct answer is B: $23 000

📋 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.

🔒

Unlock the Examiner's Analysis

Join thousands of Cambridge students already using Oracle Prep

About This A-Level Accounting Question

Topic

This multiple-choice question tests Depreciation and Disposal of Non-Current Assets in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2012 examination, Paper 1 Variant 2.

Practice on Oracle Prep

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers across 29 subjects.