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

Preparation of financial statements — practice question

When its first year of trading had ended, a company gave the information below. Dividends: $3000$ was paid during the year, and $5800$ was proposed at the year end. Debenture interest: $4000$ was paid during the year, and $1600$ had accrued at the year end. Directors’ salaries: $10800$ was paid during the year, and nil was outstanding at the year end. By what total amount do these items decrease the profit for the year?

  • A$13200$
  • B$14400$
  • C$16400$
  • D$19400$

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