- 1 Marks
FA – May 2021 – L1 – SA – Q5 – Double-Entry Accounting Principles
Correct the effect of error in recording a credit sale.
Question
A credit sale of ₦257,000 was recorded in the day book as ₦275,000. The effect is that
A. Assets, liabilities, and equity are understated
B. Assets, liabilities, and equity are overstated
C. Assets and liabilities are overstated; no effect on equity
D. Assets and equity are overstated; no effect on liabilities
E. Equity and liabilities are understated; no effect on assets
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Errors, Double Entry, Recording Errors
- Level: Level 1
- Topic: Double-Entry Accounting Principles
- Series: MAY 2021
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