O-LevelAccountingAccounting principles and policies7707/11 · Oct/Nov 2013 · Q181 Mark

Expenses accrued, $250, were treated as a prepayment in the income statement. What effect did this have on the profit for the year?

Aoverstated by $250

Boverstated by $500

Cunderstated by $250

Dunderstated by $500

✓ Correct answer

B: overstated by $500

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2013 Paper 1 Variant 1, question 18.

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