Day: July 11, 2022

A loan due for repayment in 30 months’ time has been included as a current liability.

What will be the effect when this is corrected?

Select ONE answer:

1. increase net assets
2. increase net current assets
3. no effect on net current assets
4. reduce net 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
3. Not correct
4. Not correct

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