Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The information below relates to a business at 31 December 2021. General expenses outstanding at 1 January: $420$ General expenses prepaid at 1 January: $240$ General expenses outstanding at 31 December: $720$ General expenses prepaid at 31 December: $120$ The total cash paid in the year ended 31 December 2021 was $11500$. What figure should be shown in the income statement for general expenses for the year ended 31 December 2021?

  • A$10240
  • B$10720
  • C$11080
  • D$11920

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