A-LevelAccountingFinancial Statements / Accounting EquationOct/Nov 2014Paper 1 Q81 Mark
A business sells some of its inventory for $500 on credit to a customer. The inventory cost $600. What is the effect of this transaction on the statement of financial position?
Adecrease by $100, decrease by $100
Bdecrease by $100, increase by $100
Cincrease by $100, decrease by $100
Dincrease by $100, increase by $100
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of financial statements / accounting equation 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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