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

Preparation of financial statements — practice question

A trader arranges a training course for employees at a cost of $100 per person. $10$ staff members attended in April and $4$ attended in May. Half of the overall amount was payable at the beginning of April, with the remaining amount due at the end of May. Which entry for training was shown in the statement of financial position on $30$ April?

  • A$300 accrual
  • B$400 accrual
  • C$600 prepayment
  • D$700 prepayment

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