O-LevelAccountingPreparation of financial statements7707/12 · Oct/Nov 2018 · Q231 Mark

During the financial year, a manufacturing company's payments included the following. purchase of a new machine running costs of the machine Where would these appear in the financial statements prepared at the end of the financial year?

Amachine: manufacturing account; running costs of machine: income statement

Bmachine: manufacturing account; running costs of machine: manufacturing account

Cmachine: statement of financial position; running costs of machine: income statement

Dmachine: statement of financial position; running costs of machine: manufacturing account

✓ Correct answer

D: machine: statement of financial position; running costs of machine: manufacturing account

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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 2, question 23.

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During the financial year, a manufacturing company's payments included the following. purchase of a new machine running costs of the machine Where would these appear in the financial statements prepared at the end of the financial year?

✓ Correct answer

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