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David Gordon Is an Accountant for Bronte Ltd B) C)

Question 53

Multiple Choice

David Gordon is an accountant for Bronte Ltd.At the end of the year he realised that ending inventory was overstated but the purchases account was recorded correctly.What is the effect of correcting the above error in the statement of comprehensive income and statement of financial position (inventory) accounts of Bronte Ltd?


A)
 Statement of  comprehensive income  Statement of financial  position (inventory)   Increase  Increase \begin{array} { | c | c | } \hline \begin{array} { c } \text { Statement of } \\\text { comprehensive income }\end{array} & \begin{array} { c } \text { Statement of financial } \\\text { position (inventory) }\end{array} \\\hline \text { Increase } & \text { Increase } \\\hline\end{array}
B)
 Statement of  comprehensive income  Statement of financial  position (inventory)   Decrease  Increase \begin{array} { | c | c | } \hline \begin{array} { c } \text { Statement of } \\\text { comprehensive income }\end{array} & \begin{array} { c } \text { Statement of financial } \\\text { position (inventory) }\end{array} \\\hline \text { Decrease } & \text { Increase } \\\hline\end{array}
C)
 Statement of  comprehensive income  Statement of financial  position (inventory)   Decrease  Decrease \begin{array} { | c | c | } \hline \begin{array} { c } \text { Statement of } \\\text { comprehensive income }\end{array} & \begin{array} { c } \text { Statement of financial } \\\text { position (inventory) }\end{array} \\\hline \text { Decrease } & \text { Decrease } \\\hline\end{array}
D)
 Statement of  comprehensive income  Statement of financial  position (inventory)   Increase  Decrease \begin{array} { | c | c | } \hline \begin{array} { c } \text { Statement of } \\\text { comprehensive income }\end{array} & \begin{array} { c } \text { Statement of financial } \\\text { position (inventory) }\end{array} \\\hline \text { Increase } & \text { Decrease } \\\hline\end{array}

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