WAEC Accounting 2021 Objective — Question 12
Question 12 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.
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Sales account was undercast by GH¢1,000. When this is corrected, both the gross profit and the net profit would
- A. increase by GH¢2,000
- B. increase by GH¢1,000Correct
- C. decrease by GH¢1,000
- D. decrease by GH¢2,000
Explanation
If sales is undercast, profit is undercast by the same amount; when discovered and corrected, both gross and net profit increase by the amount of the undercast (GH¢1,000).
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