A-LevelAccountingAnalysis and InterpretationOct/Nov 2014Paper 1 Q201 Mark

The following financial information is available. $ trade payables 10000 bank overdraft 4400 trade receivables 20000 other receivables 600 other payables 1600 non-current liabilities 5000 The business has a current ratio of 2.5:1. What is the value of inventory?

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

The correct answer is C: $19400.

Q: What topic does this question test?

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

A$15900

B$16900

C$19400

D$31900

✓ Correct Answer

The correct answer is C: $19400

📋 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 Analysis and Interpretation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2014 examination, Paper 1 Variant 2.

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