O-LevelAccountingAccounting principles and policies7707/12 · Oct/Nov 2017 · Q131 Mark

A business purchased a motor vehicle and included it as a business expense in the income statement. How did this affect the financial statements? | | profit for the year | non-current assets | |---|---|---| | A | overstated | overstated | | B | overstated | understated | | C | understated | overstated | | D | understated | understated |

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Aoverstated overstated

Boverstated understated

Cunderstated overstated

Dunderstated understated

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D: understated understated

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2017 Paper 1 Variant 2, question 13.

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