At 1 January 2021 Javid has an accrual for electricity of £215. During the year to 31 December 2021 he made payments totalling £3,420 for electricity. At the 31 December he has calculated an accrual of £310 Which of these statements is correct concerning the accounting for the electricity in the financial statements for year end 31 December 2021? a. Statement of profit or loss Expense £3,325 Statement of financial position Liability £310 b. Statement of profit or loss Expense £3,325 Statement of financial position Asset £310 c. Statement of profit or loss Expense £3,515 Statement of financial position Asset £310 d. Statement of profit or loss Expense £3,515 Statement of financial position Liability £310
At 1 January 2021 Javid has an accrual for electricity of £215. During the year to 31 December 2021 he made payments totalling £3,420 for electricity. At the 31 December he has calculated an accrual of £310 Which of these statements is correct concerning the accounting for the electricity in the financial statements for year end 31 December 2021? a. Statement of profit or loss Expense £3,325 Statement of financial position Liability £310 b. Statement of profit or loss Expense £3,325 Statement of financial position Asset £310 c. Statement of profit or loss Expense £3,515 Statement of financial position Asset £310 d. Statement of profit or loss Expense £3,515 Statement of financial position Liability £310
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At 1 January 2021 Javid has an accrual for electricity of £215. During the year to 31 December 2021 he made payments totalling £3,420 for electricity. At the 31 December he has calculated an accrual of £310
Which of these statements is correct concerning the accounting for the electricity in the financial statements for year end 31 December 2021?
a.
Statement of profit or loss Expense £3,325 Statement of financial position Liability £310
b.
Statement of profit or loss Expense £3,325 Statement of financial position Asset £310
c.
Statement of profit or loss Expense £3,515 Statement of financial position Asset £310
d.
Statement of profit or loss Expense £3,515 Statement of financial position Liability £310
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