Day: August 20, 2020

At the end of the financial year there was a debit balance brought down on the office expenses account.

In which section of the statement of financial position will this be recorded?

Select ONE answer:

1. capital
2. current assets
3. current liabilities
4. non-current assets

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – prepayment
3. Not correct – that would be be a credit balance / accrual
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.