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

Preparation of financial statements — practice question

On 31 December 2021, the draft statement of financial position of a business reported total assets of $1000000. The following errors were later found. 1. A rise in the provision for doubtful debts, $5000, had not been entered. 2. Closing inventory had been overstated by $20000. 3. Depreciation, $10000, had not been entered. What was the adjusted total assets value?

  • A$965000
  • B$985000
  • C$1005000
  • D$1015000

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