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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › kaplan question sofp
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 assets
The kaplan exam kit says answer is D
but my answer is B
i dont understand why how will the loan affect current assets
On the question as you have typed it, the answer is indeed B and is not D.