WAEC Accounting 2012 Objective — Question 3
Question 3 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.
Advertisement
When closing stock is overstated, it would reduce
- A. cost of sales and increase gross profitCorrect
- B. gross profit and increase cost of sales
- C. purchases and increase sales
- D. sales and increase purchases
Explanation
When closing stock is overstated, the cost of goods sold will be reduced and gross profit will be overstated.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.