A-LevelAccountingFinancial Accounting (Income Statement)Oct/Nov 2014Paper 1 Q241 Mark
A company's sales revenue has increased by 40% in a period, but its gross profit has only increased by 30%. Which factors could explain this? 1 a decrease in the cost of sales 2 a decrease in selling price per unit 3 an increase in administration expenses 4 an increase in purchase price per unit
A1 and 2
B2 and 3
C2 and 4
D3 and 4
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of financial accounting (income statement) 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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