O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2014 · Q131 Mark

On 1 January 2013 advertising of $120 was prepaid. During the year $1280 was paid for advertising. On 31 December 2013 an amount of $960 was transferred to the income statement. What was the balance on the advertising account on 1 January 2014?

A$200 accrued

B$200 prepaid

C$440 accrued

D$440 prepaid

✓ Correct answer

D: $440 prepaid

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2014 Paper 1 Variant 2, question 13.

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