Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A business begins on 1 January with $\$800$ prepaid for four months’ motor insurance. It also has fuel payable on an unpaid invoice of $\$140$. In January, the business settles the fuel invoice and pays another $\$600$ for fuel. By 31 January, there is still an unpaid fuel invoice of $\$160$. What amount should be shown for motor expenses in the income statement for January?

  • A$\$760$
  • B$\$960$
  • C$\$1100$
  • D$\$1560$

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