A-LevelAccountingWorking Capital ManagementOct/Nov 2013Paper 1 Q211 Mark
A business is reviewing credit limits for its customers. What would result in a customer's credit limit being reduced?
ACash discounts are always taken by the customer.
BSales have increased to that customer.
CThe customer always pays their debt on time.
DThe customer has lost a major contract.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of working capital management within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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