O-LevelAccountingPreparation of financial statements7707/12 · May/June 2017 · Q161 Mark

A trader calculated her draft profit for the year at $28400. She later discovered the following errors. A prepayment of rent payable was understated by $1000. Closing inventory was understated by $1500. What was the correct profit for the year?

A$25900

B$27900

C$28900

D$30900

✓ Correct answer

D: $30900

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Topic: Preparation of financial statements, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2017 Paper 1 Variant 2, question 16.

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