WAEC Accounting 2019 Objective — Question 32

Question 32 of 50 from the West African Examinations Council (WAEC) Accounting 2019 Objective paper, with the correct answer and a full explanation.

An effect of increase in the provision for depreciation is A. decrease in gross profit. B. increase in net profit. C. increase in gross profit. D. decrease in net profit.

A. decrease in gross profit
B. increase in net profit
C. increase in gross profit
D. decrease in net profitCorrect

Explanation

When provision for depreciation increases, the total expenses increase and the net profit decreases consequentially.

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