O-LevelAccountingAccounting principles and policies7707/12 · May/June 2024 · Q141 Mark

The cost of repairs to machinery was debited to the machinery account. What was the effect of this error? non-current assets profit for the year A overstated overstated B overstated understated C understated overstated D understated understated

Aoverstated; overstated

Boverstated; understated

Cunderstated; overstated

Dunderstated; understated

✓ Correct answer

A: overstated; overstated

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2024 Paper 1 Variant 2, question 14.

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The cost of repairs to machinery was debited to the machinery account. What was the effect of this error? non-current assets profit for the year A overstated overstated B overstated understated C understated overstated D understated understated

✓ Correct answer

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