O-LevelAccountingAccounting principles and policies7707/11 · May/June 2025 · Q141 Mark

What is the effect of incorrectly treating expenses as capital expenditure? [Table with column headers: 'income statement: profit for the year', 'income statement: expenses total']

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Aoverstated, overstated

Boverstated, understated

Cunderstated, understated

Dunderstated, overstated

✓ Correct answer

B: overstated, understated

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2025 Paper 1 Variant 1, question 14.

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What is the effect of incorrectly treating expenses as capital expenditure? [Table with column headers: 'income statement: profit for the year', 'income statement: expenses total']

✓ Correct answer

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