A-LevelAccountingManagement Accounting (Budgeting)Oct/Nov 2014Paper 1 Q301 Mark
A business prepared a cash budget using the following information. $ fixed costs each month 5000 depreciation each month 1000 July $ August $ September $ credit sales 80000 100 000 110000 credit purchases 40000 60 000 80000 Cash for credit sales is received one month after the goods are sold. Purchases are paid two months after the goods are bought. Other costs are paid in the month they are incurred. What was the budgeted cash surplus for the month of September?
A$54000
B$55000
C$59.000
D$60000
✓ Correct Answer
The correct answer is B: $55000
📋 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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