Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

It is discovered that opening inventory has been overstated by $\$8000$ and closing inventory has been overstated by $\$6500$. What effect will correcting these errors have on profit for the year?

  • Adecrease of $\$1500$
  • Bdecrease of $\$14500$
  • Cincrease of $\$1500$
  • Dincrease of $\$14500$

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