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

Preparation of financial statements — practice question

A business's draft statement of financial position reported total net assets of $600000. The following errors were then found. 1. A $10000 long-term loan had not been entered in the records. It was borrowed on the final day of the financial year. 2. Closing inventory had been recorded at $20000 too high. 3. Depreciation had been recorded at $15000 too low. What is the correct total net assets value?

  • A$555000
  • B$565000
  • C$595000
  • D$605000

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