Search
.Management Sciences
A. Previous year‘s profit is overstated and current year‘s profit is also overstated.
B. Previous year‘s profit is understated and current year‘s profit is overstated.
C. Previous year‘s profit is overstated and current year‘s profit is understated.
D. There will be no impact on the profit of either the previous year or the current year.
C. Closing stock overstatement and opening stock understatement increases the profits
and vice versa is also equally true.
Related Mcqs:
- Credit memo or credit note No. is entered in which of the following journal?
- A. General journal B. Cash journal C. Purchase journal D. Sales return day book...
- The first step in accounting process is___________?
- A. Recording the transaction B. Identifying the transaction C. Posting the transaction D. Preparing the source documents...
- Which of these types of expenditure would not be treated as a Capital Expenditure?
- A. Acquisition of an Asset B. Extension of an Asset C. Improvement of the existing Asset D. Maintenance of the Asset...
- Which of the following is not classified as inventory in the financial statements?
- A. Finished goods B. Work-in-process C. Stores and spares D. Advance payments made to suppliers for raw materials...
- Which of the following is not a contingent liability?
- A. Debts included in Sundry Debtors which are doubtful in nature B. Uncalled liability on partly paid shares C. Claims against the company not acknowledged as debts D. Arrears of fixed cumulative dividend...
Recent Comments