- This topic has 1 reply, 2 voices, and was last updated 1 month ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
A draft statement of financial position has been prepared for Lollipop, a sole trader. It is now
discovered that a loan due for repayment by Lollipop 14 months after the reporting date has
been included in trade payables.
What will be the effect of the necessary adjustment?A No effect on net current assets
B Increase net current assets
C Reduce net current assets
D Increase current assets but reduce net current assetsThe kaplan exam kit says answer is D
but my answer is B
i dont understand why how will the loan affect current assets
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.