A-LevelAccountingPreparation of financial statements9706/12 · May/June 2013 · Q131 Mark
The wages of staff employed in manufacturing goods have been debited in the income statement. What is the effect of this error?
Agross profit overstated, profit for the year no effect
Bgross profit overstated, profit for the year overstated
Cgross profit understated, profit for the year no effect
Dgross profit understated, profit for the year understated
✓ Correct answer
A: gross profit overstated, profit for the year no effect
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