O-LevelAccountingPreparation of financial statements7707/11 · May/June 2017 · Q191 Mark
At the end of Carl's financial year he made an adjustment for $40 rent owed by his tenant. How did this adjustment affect Carl's financial statements? decrease profit for the year increase profit for the year increase current assets increase current liabilities A ✓ B ✓ ✓ C ✓ ✓ D ✓
Adecrease profit for the year (included); increase profit for the year (not included); increase current assets (not included); increase current liabilities (not included)
Bdecrease profit for the year (included); increase profit for the year (not included); increase current assets (included); increase current liabilities (not included)
Cdecrease profit for the year (not included); increase profit for the year (included); increase current assets (included); increase current liabilities (not included)
Ddecrease profit for the year (not included); increase profit for the year (not included); increase current assets (not included); increase current liabilities (included)
✓ Correct answer
C: decrease profit for the year (not included); increase profit for the year (included); increase current assets (included); increase current liabilities (not included)
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.
Sign up free →