O-LevelAccountingSources and recording of data7707/11 · May/June 2022 · Q221 Mark
At the end of his financial year, Marek was owed $200 for interest on a loan he had made to an employee. He recorded this in his financial statements. How did the interest on this loan affect Marek's profit for the year and where was it recorded in his statement of financial position? profit for the year statement of financial position
Aprofit for the year: decreased, statement of financial position: current assets
Bprofit for the year: decreased, statement of financial position: current liabilities
Cprofit for the year: increased, statement of financial position: current assets
Dprofit for the year: increased, statement of financial position: current liabilities
✓ Correct answer
C: profit for the year: increased, statement of financial position: current assets
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