Search
.Management Sciences
A. 17,000 (overstated.
B. 12,000 (understated.
C. 7,000 (overstated.
D. 7,000 (understated.
C. Overstatement of closing stock results in overstatement of profit and overstatement of
opening stock results in understatement of profit. In the instant case, there will be overstatement of
profit by 12,000 – 5,000 = 7,000.
Related Mcqs:
- An asset must be _______ by the business to be shown as an asset in its “balance sheet”
- A. Possessed B. Owned C. Controlled D. Used...
- Which of following best describes the increase in equity expands___________?
- A. Business operations B. cash outflows C. Inflows of cash D. Appropriation expenses...
- Which of the following is true?
- A. Error of casting affects personal accounts B. Omission of a transaction from a subsidiary record affects only one account C. Error of carry forward affects two accounts D. Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue...
- The balance of which of the following accounts do not disappear, once they are debited/credited to Trading Account?
- A. Sales B. Purchases C. Inward returns D. Closing stock...
Recent Comments