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kaplan question sofp

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › kaplan question sofp

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by AvatarJohn Moffat.
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  • July 30, 2025 at 3:22 pm #718606
    Avatarzainab4321
    Participant
    • Topics: 7
    • Replies: 4
    • ☆

    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

    July 30, 2025 at 5:55 pm #718607
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    On the question as you have typed it, the answer is indeed B and is not D.

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