Accounting Multiple Choice Question – 2 December 2021

The wages of staff employed in getting goods into a saleable condition have been debited in the Profit and Loss Account.

What is the effect of this error?

Select ONE answer:

• Gross profit – overstated / Net profit – no effect
• Gross profit – overstated / Net profit – overstated
• Gross profit – understated / Net profit – no effect
• Gross profit – understated / Net profit – understated

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 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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