Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

Kate worked out her draft profit for the year as $\$28\,400$. She then found these mistakes. 1. The rent prepaid by Kate had been understated by $\$1000$. 2. The closing inventory had been understated by $\$1500$. What is the correct profit for the year?

  • A$\$25\,900$
  • B$\$27\,900$
  • C$\$28\,900$
  • D$\$30\,900$

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