Y purchased some plant on 1 January 20X0 for $38,000. The payment for the plant was correctly entered in the cash book but was entered on the debit side of the plant repairs account.Y charges depreciation on the straight line basis at 20% per year,
with a proportionate charge in the years of acquisition and disposal, and assuming no scrap value at the end of the life of the
asset.
How will Y's profit for the year ended 31 March 20X0 be affected by the error?
DEBIT Property, plant and equipment $38,000
CREDIT Plant repairs $38,000
DEBIT Dep'n expense $1,900
CREDIT Accumulated dep'n $1,900
Profit is understated by $38,000 - $1,900 = $36,100
多做几道
Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal
use?
Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal
use?
According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful
representation?1 It is neutral2 It is relevant3 It is presented fairly4 It is free from material error
Which of the following accounting concepts means that similar items should receive a similar accounting treatment?
Listed below are some characteristics of financial information.1 Relevance2 Consistency3 Faithful representation4 Accuracy
Which of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for
Financial Reporting?
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