O-LevelAccountingPreparation of financial statements7707/12 · May/June 2014 · Q161 Mark
Janet's debtor pays the amount owing in cash, after deducting 2% cash discount. How does this affect Janet's financial statements? income statement statement of financial position A increase expenses decrease current assets B increase expenses increase current assets C increase revenue decrease current assets D increase revenue increase current assets
Aincrease expenses decrease current assets
Bincrease expenses increase current assets
Cincrease revenue decrease current assets
Dincrease revenue increase current assets
✓ Correct answer
A: increase expenses decrease current assets
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