O-LevelAccountingVerification of accounting records7707/12 · May/June 2011 · Q141 Mark

Motor repairs of $250 have been posted in error to the motor vehicles account. What is the effect on the financial statements? profit for the year non-current assets A overstated overstated B overstated understated C understated overstated D understated understated

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Aprofit for the year: overstated; non-current assets: overstated

Bprofit for the year: overstated; non-current assets: understated

Cprofit for the year: understated; non-current assets: overstated

Dprofit for the year: understated; non-current assets: understated

✓ Correct answer

A: profit for the year: overstated; non-current assets: overstated

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Verification of accounting records and see which topics are most likely to come up next.

About this question

Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2011 Paper 1 Variant 2, question 14.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Motor repairs of $250 have been posted in error to the motor vehicles account. What is the effect on the financial statements? profit for the year non-current assets A overstated overstated B overstated understated C understated overstated D understated understated

✓ Correct answer

Practise more questions on this topic

About this question

Related Accounting questions