O-LevelAccountingPreparation of financial statements7707/12 · Oct/Nov 2023 · Q261 Mark

A sports club operates a shop selling running shoes to members. These shoes are purchased on credit terms from suppliers. Which item is recorded in the receipts and payments account?

Ainventory of shoes

Bpayments to suppliers

Cpurchases of shoes

Dshop profit or loss

✓ Correct answer

B: payments to suppliers

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Topic: Preparation of financial statements, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2023 Paper 1 Variant 2, question 26.

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