1 If £500 was shown added to purchases instead of being added to a fixed asset: (A) Net profit only would be understated (B) Net profit only would be overstated (C) It would not affect net profit (D)...

1

If £500 was shown added to purchases instead of being added to a fixed asset:

(A) Net profit only would be understated

(B) Net profit only would be overstated

(C) It would not affect net profit

(D) Both gross and net profits would be understated.

2

A cheque paid by you, but not yet passed through the banking system, is

(A) A standing order

(B) A dishonoured cheque

(C) A credit transfer

(D) An unpresented cheque.