A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2014 · Q41 Mark

Opening inventory is found to be overstated by $8000 and closing inventory is overstated by $6500. What is the effect of the correction of these errors on profit for the year?

Adecrease of $1500

Bdecrease of $14500

Cincrease of $1500

Dincrease of $14500

✓ Correct answer

C: increase of $1500

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2014 Paper 1 Variant 2, question 4.

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