Stock purchased was debited incorrectly to the motor vehicles account. The effect on the profit and loss account would be ？
A: Asset unaffected
B: Asset understated
C: Profit unaffected
D: Profit affected
A: Asset unaffected
B: Asset understated
C: Profit unaffected
D: Profit affected
举一反三
- Net profit is calculated in the A: Trading account B: Profit and loss account C: Trial balance D: Balance sheet
- Which ONE of the following is an error of principle? A: A gas bill credited to gas account and debited to the bank account. B: The purchase of a non-current asset credited to the asset account at cost and debited to the payable’s account. C: The purchase of a non-current asset debited to the purchases account and credited to the payable’s account. D: The payment of wages debited and credited to the correct accounts, but using the wrong amount.
- When the return on equity equation (ROE) is decomposed using the original DuPont system, what three ratios comprise the components of ROE（） A: Gross profit margin, asset turnover, equity multiplier. B: Net profit margin, asset turnover, asset multiplier. C: Net profit margin, asset turnover, equity multiplier.
- When the financial statements are prepared, the Bad Debts Account is closed by a transfer to the A: Balance Sheet B: Profit and Loss Account C: Trading Account D: Al lowance for Doubtful Debts Account
- Which one of the following would be an error of principle? A: Plant and machinery purchased was credited to a non-current assets account B: Plant and machinery purchased was debited to the purchases account C: Plant and machinery purchased was debited to the equipment account D: Plant and machinery purchased was credited to the equipment account