O-LevelAccountingPreparation of financial statements7707/11 · Oct/Nov 2018 · Q151 Mark

Hossam took out a 5-year bank loan on 1 January 2018. All of the money borrowed was used to purchase a delivery van. Under which heading will these items be shown in Hossam's statement of financial position on 31 March 2018?

Abank loan current liability delivery van current asset

Bbank loan current liability delivery van non-current asset

Cbank loan non-current liability delivery van current asset

Dbank loan non-current liability delivery van non-current asset

✓ Correct answer

A: bank loan current liability delivery van current asset

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Topic: Preparation of financial statements, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2018 Paper 1 Variant 1, question 15.

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Hossam took out a 5-year bank loan on 1 January 2018. All of the money borrowed was used to purchase a delivery van. Under which heading will these items be shown in Hossam's statement of financial position on 31 March 2018?

✓ Correct answer

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