Day: June 1, 2024

Recording the purchase of computer stationery by debiting the computer equipment account would result in?

Select ONE answer:

1. An overstatement of profit and an overstatement of non-current assets
2. An understatement of profit and an overstatement of non-current assets
3. An overstatement of profit and an understatement of non-current assets
4. An understatement of profit and an understatement of 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 1

1. Correct –> An expense has been posted as a non-current asset when it should have been a deduction from profit, non-current assets are overstated as a result.
2. Not correct
3. Not correct
4. Not correct

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