I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

the year ended 30 June 20X2?  

A $1,152,250 

B $1,189,750 

C $1,216,250 

 

D $1,253,750 

 

(2 marks) 

46 

Which of the following statements is/are true? 

1 

Accrued expenses are expenses which relate to the current accounting period but have not 

been paid for. They are shown in the statement of profit or loss for the current period in 

accordance with the accruals concept.  

2 

Prepaid expenses are expenses which have already been paid in the current period but 

relate to a future accounting period. They are shown in the statement of profit or loss for 

the current period in accordance with the timeliness concept.  

A 1 

only 

B 2 

only 

C 

Both 1 and 2 

D 

Neither statement is true 

 

(2 marks) 

47 

At 30 June 20X5 a company's allowance for receivables was $39,000. At 30 June 20X6 trade 

receivables totalled $517,000. It was decided to write off debts totalling $37,000 and the 

allowance for receivables was to be adjusted to the equivalent of 5% of the outstanding trade 

receivables.  

What figure should appear in the statement of profit or loss for the year ended 30 June 20X6