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1.which have the following statement is/are true?
A supplier of goods on credit is interested only in the statement of financial position ie an indication of the current state of affairs
The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions
A.1 only
B.2 only
C.both 1 and 2
D.neiither 1 or 2
2.A company’s income statement for the year ended 31 December 20X5 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to the motor expenses account. It is the company’s policy to depreciate motor vans at 25% per year on the straight line basis, with a full year’s charge in the year of acquisition.
What would the net profit be after adjusting for this error?
A.$106,100
B.$70,100
C.$97,100
D $101,600
1 2
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