O-LevelAccountingVerification of accounting records7707/11 · May/June 2020 · Q221 Mark

The owner of a business took goods for his own use but forgot to make an entry in the accounts. What was the effect of this error? profit for the year capital employed A overstated no effect B overstated understated C understated no effect D understated overstated

Aoverstated no effect

Boverstated understated

Cunderstated no effect

Dunderstated overstated

✓ Correct answer

C: understated no effect

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Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2020 Paper 1 Variant 1, question 22.

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The owner of a business took goods for his own use but forgot to make an entry in the accounts. What was the effect of this error? profit for the year capital employed A overstated no effect B overstated understated C understated no effect D understated overstated

✓ Correct answer

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