- 1 Marks
FA – May 2018 – L1 – SA – Q6 – Correction of Errors
Calculates the corrected profit after adjusting errors in revenue and expense entries.
Question
At the end of a financial period, the statement of profit or loss of a company showed a profit of N2,400,000. It was however, discovered that revenue of N240,000 was recorded as expenses while expenses of N80,000 had been recorded as revenue. What should be the correct profit for the period?
A. N2,080,000
B. N2,560,000
C. N2,640,000
D. N2,680,000
E. N2,720,000
Find Related Questions by Tags, levels, etc.
- Tags: Error Adjustment, Financial Statements, Profit Calculation
- Level: Level 1
- Topic: Correction of errors
- Series: MAY 2018
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