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

Preparation of financial statements — practice question

The statement of financial position set out the following balances at 31 December 2015. Net assets on 1 January 2015 were $14000. During the year ended 31 December 2015, property was revalued upwards by $12000. No drawings were taken out in the year. What profit was earned for the year ended 31 December 2015?

  • A$2500
  • B$5500
  • C$14500
  • D$17500

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