O-LevelAccountingAccounting procedures7707/12 · May/June 2023 · Q101 Mark

Maya depreciates her motor vehicle at 25% per annum using the straight-line method. The motor vehicle cost $15000. The depreciation for the current financial year was incorrectly calculated at 15% per annum. How will correcting the error affect the profit for the year?

Adecrease $1500

Bdecrease $2250

Cincrease $1500

Dincrease $2250

✓ Correct answer

A: decrease $1500

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2023 Paper 1 Variant 2, question 10.

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