Accounting 0452 · IGCSE · Other payables and other receivables

Other payables and other receivables — practice question

At the close of his financial year, Marek was due $200$ in interest from a loan he had advanced to an employee. He entered this in his financial statements. What effect did this loan interest have on Marek’s profit for the year, and in which part of his statement of financial position was it shown?

  • Aprofit for the year decreased, current assets
  • Bprofit for the year decreased, current liabilities
  • Cprofit for the year increased, current assets
  • Dprofit for the year increased, current liabilities

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