O-LevelAccountingVerification of accounting records7707/12 · May/June 2015 · Q191 Mark
The owner of a business took goods for his own use but failed to make an entry in the accounts. What was the effect of this error?
Aprofit for the year: overstated, capital employed: no effect
Bprofit for the year: overstated, capital employed: understated
Cprofit for the year: understated, capital employed: no effect
Dprofit for the year: understated, capital employed: overstated
✓ Correct answer
C: profit for the year: understated, capital employed: no effect
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