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O-LevelAccountingSources and recording of data7707/11 · Oct/Nov 2018 · Q61 Mark

Which statement about a debit balance brought down on a ledger account is not correct?

AIt may represent a loss.

BIt may represent a prepaid expense.

CIt may represent an accrued expense.

DIt may represent an asset.

✓ Correct answer

A: It may represent a loss.

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About this question

Topic: Sources and recording of data, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2018 Paper 1 Variant 1, question 6.

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