A-LevelAccountingAdjustments to Financial StatementsOct/Nov 2013Paper 1 Q21 Mark

A business wishes to create a new provision for doubtful debts. Which effect will this have in the financial statements of the business? in the income statement in the statement of financial position

Q: What topic does this question test?

This question tests Adjustments to Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Aincrease profit increase current assets

Bincrease profit reduce current liabilities

Creduce profit increase current liabilities

Dreduce profit reduce current assets

✓ Correct Answer

The correct answer is D: reduce profit reduce current assets

📋 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 Adjustments to Financial Statements in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2013 examination, Paper 1 Variant 2.

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