On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified.?

Accounting Mcqs
BILAL KHATTAK0

i. Depreciation for 2011-2012- 7,000 understated ii. Accrued expenses as at March 31, 2013 – 10,000 understated The impact of this on the reported net income for the year ending March 31, 2013 is A. 7,000 Overstated 
B. 10,000 Overstated 
C. 17,000 Understated
D. 17,000 Overstated 

Related Mcqs:

  1. While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result?
  2. During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true??
  3. Which of the following are current assets of a business??
  4. Which of the following is true with respect to providing depreciation under diminishing balance method??
  5. For the past 3 years, DK Ltd. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which were considered material, were as follows:?
  6. Which of the following statements is true with regard to written down value method of depreciation??
  7. A few errors committed in Ahhiwalia’s books of account are given below. State which errors would affect the Trial Balance.?
  8. Net loss occurs when______________??
  9. World Tuberculosis Day is observed on _______________________ ?
  10. Goods returned by customer should be debited to which of the following accounts??

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