A-LevelAccountingReconciliation and verification9706/12 · May/June 2024 · Q111 Mark

After preparing the draft statement of profit or loss, it was discovered that the purchase of an office computer had been incorrectly recorded in the purchases account. What will the effect of correcting this error be on cost of sales and profit for the year? cost of sales profit for the year

Adecrease decrease

Bdecrease increase

Cincrease decrease

Dincrease increase

✓ Correct answer

B: decrease increase

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Reconciliation and verification and see which topics are most likely to come up next.

About this question

Topic: Reconciliation and verification, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2024 Paper 1 Variant 2, question 11.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Reconciliation and verificationFeb/Mar 20201m

A trial balance does not balance and a suspense account is opened. Later the following errors are found and the suspe…

Reconciliation and verificationFeb/Mar 20201m

A sales ledger control account included the following entries. 1 contra with the purchases ledger control account $50…

Reconciliation and verificationFeb/Mar 20201m

A company's bank statement showed a credit balance of $2000. The following errors were found. 1 A receipt of $2700 an…

Preparation of financial statementsFeb/Mar 20181m

A sole trader withdraws goods for his own use. How does this affect his financial statements? income statement statem…

Preparation of financial statementsFeb/Mar 20181m

A company has a year-end of 31 December. Its inventory records on that date showed an inventory of 600 units with a c…

Preparation of financial statementsFeb/Mar 20181m

A business has a draft profit for the year of $182750. The following adjustments have not yet been made. 1 a decrease…

← Browse all past-paper questions