O-LevelAccountingPreparation of financial statements7707/13 · Oct/Nov 2021 · Q161 Mark
The following errors were found after a statement of financial position had been prepared. 1 A loan repayable in two year's time had been included as a current liability. 2 A provision for doubtful debts should have been created. What is the effect of correcting these errors?
Acurrent assets: decrease, current liabilities: decrease, non-current liabilities: increase, owner's equity: decrease
Bcurrent assets: decrease, current liabilities: increase, non-current liabilities: decrease, owner's equity: increase
Ccurrent assets: increase, current liabilities: decrease, non-current liabilities: decrease, owner's equity: increase
Dcurrent assets: increase, current liabilities: increase, non-current liabilities: decrease, owner's equity: decrease
✓ Correct answer
A: current assets: decrease, current liabilities: decrease, non-current liabilities: increase, owner's equity: decrease
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.
Sign up free →