A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2015 · Q11 Mark

Why does a trader account for accrued income?

Aso that current liabilities are not overstated

Bso that current liabilities are not understated

Cso that profit is not overstated

Dso that profit is not understated

✓ Correct answer

D: so that profit is not understated

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2015 Paper 1 Variant 2, question 1.

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