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

Preparation of financial statements — practice question

An electricity accrual of $375 was entered as a prepayment when the trader’s income statement was being prepared. How did this affect the profit for the year?

  • Aoverstated by $375
  • Boverstated by $750
  • Cunderstated by $375
  • Dunderstated by $750

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI