Day: September 2, 2021

Alex Limited suffered a substantial uninsured loss of £60,000 when stock was stolen from its premises.

How will the loss be disclosed in the company’s published accounts? 

Select ONE answer:

1. adjustment to reserves
2. exceptional item
3. extraordinary item
4. prior year adjustment

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
3. Not correct
4. Not correct

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