A-LevelAccountingBudgetingOct/Nov 2013Paper 1 Q301 Mark

Ted plans to buy a motor vehicle for $12000 on 1 May 2014. He intends to pay half at the time of purchase and to take out a loan at 6% interest a year to finance the balance. The loan is to be repaid on 1 November 2014. Which figures does Ted include in his cash budget for 2014? May $ November $

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

The correct answer is B: 6000 6180.

Q: What topic does this question test?

This question tests Budgeting in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A6000 6000

B6000 6180

C12000 0

D12000 180

✓ Correct Answer

The correct answer is B: 6000 6180

📋 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 Budgeting 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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