JAMB Accounting 2016 Objective — Question 8
Question 8 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2016 Objective paper, with the correct answer and a full explanation.
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8. When stock withdrawn for personal use is taken care of in the trading account, it will _____ profit (a) increase (b) decrease (c) overstate (d) understate
- A. increaseCorrect
- B. decrease
- C. overstate
- D. understate
Explanation
When goods are withdrawn is removed from cost of goods available for sale, it will increase profit.
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