Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A business draws up its financial statements on 31 December. Insurance premiums paid were as follows. January 2015: 1 July 2014 to 31 December 2014, $940$ July 2015: 1 January 2015 to 30 June 2015, $1120$ January 2016: 1 July 2015 to 31 December 2015, $1245$ March 2016: 1 January 2016 to 30 June 2016, $1880$ Which amount should be recorded in the income statement for the year ended 31 December 2015?

  • A$1120$
  • B$2060$
  • C$2365$
  • D$3305$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI