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

Preparation of financial statements — practice question

A business has worked out its draft profit for the year. The following matters were then found. 1 Closing inventory had been valued too highly. 2 Irrecoverable debts had to be written off. 3 Depreciation on non-current assets had to be lowered. What effect will adjusting these items have on the profit for the year?

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