Accounting 0452 · IGCSE · Other payables and other receivables

Other payables and other receivables — practice question

At the close of his financial year, Raminder recorded an adjustment for rent that a tenant still owed him. What effect did this have on Raminder’s financial statements?

  • Aprofit for the year: decrease; current assets: decrease
  • Bprofit for the year: decrease; current assets: increase
  • Cprofit for the year: increase; current assets: decrease
  • Dprofit for the year: increase; current assets: increase

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