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

Preparation of financial statements — practice question

For the year ended 31 December 2018, a business supplied the following details for telephone expenses. prepaid at 1 January 2018: $975$ accrued at 1 January 2018: $650$ bank payments during the year: $4875$ prepaid at 31 December 2018: $1175$ accrued at 31 December 2018: $545$ What amount of telephone expense should be entered in the income statement for the year ended 31 December 2018?

A$3920$
B$4570$
C$5180$
D$5830$

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