O-LevelAccountingAccounting procedures7707/12 · May/June 2012 · Q231 Mark

At the end of his financial year Tom owes $150 rent. How will the adjustment for this amount affect Tom's financial statements?

Adecrease expenses and increase current assets

Bdecrease expenses and increase current liabilities

Cincrease expenses and increase current assets

Dincrease expenses and increase current liabilities

✓ Correct answer

D: increase expenses and increase current liabilities

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2012 Paper 1 Variant 2, question 23.

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