Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

A trader posted the cost of fixing office equipment to the office equipment account as a debit. What effect did this error have on the financial statements?

  • Aprofit for the year overstated; non-current assets overstated
  • Bprofit for the year overstated; non-current assets understated
  • Cprofit for the year understated; non-current assets overstated
  • Dprofit for the year understated; non-current assets understated

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