A-LevelAccountingPreparation of financial statements9706/12 · May/June 2011 · Q41 Mark
Closing inventory has been overvalued. What is the effect on the financial statements? net current assets overstated, profit from operations overstated net current assets overstated, profit from operations understated net current assets understated, profit from operations overstated net current assets understated, profit from operations understated
Aoverstated, overstated
Boverstated, understated
Cunderstated, overstated
Dunderstated, understated
✓ Correct answer
A: overstated, overstated
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 →