O-LevelAccountingAccounting procedures7707/12 · May/June 2021 · Q271 Mark

Which statement about a receipts and payments account is incorrect?

AIt includes amounts prepaid at the end of the year.

BIt shows the surplus for the year.

CNon-monetary items are excluded.

DThe balance represents cash and bank balances.

✓ Correct answer

A: It includes amounts prepaid at the end of the year.

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2021 Paper 1 Variant 2, question 27.

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