WAEC Accounting 2017 Objective — Question 10
Question 10 of 50 from the West African Examinations Council (WAEC) Accounting 2017 Objective paper, with the correct answer and a full explanation.
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10. The effect on profit when the closing stock is understated is
- A. A. increase in profit
- B. B. decrease in profitCorrect
- C. C. no change in profit
- D. D. appropriation of profit
Explanation
When the closing stock is understated, the cost of goods sold will be overstated and this will reduce gross profit.
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