Clark Ltd has been trading for one year as at 31 December 2020 and during that year it paid electricity bills amounting to £760. On 14 January 2021 Clark received an electricity bill for the three months to 31 December 2020 for £310. It eventually paid the bill on 31 January 2021. Its accounts for the year ended 31 December 2020 should show: Select one: O a. A statement of profit or loss charge for electricity of £760 and an accrual of £310 on the statement of financial position o b. A statement of profit or loss charge for electricity of £1,070 and an accrual of £310 on the statement of financial position O c. A statement of profit or loss charge for electricity of £760 and a prepayment of £310 on the statement of financial position o d. A statement of profit or loss charge for electricity of £1,070 and a prepayment of £310 on the statement of financial position
Clark Ltd has been trading for one year as at 31 December 2020 and during that year it paid electricity bills amounting to £760. On 14 January 2021 Clark received an electricity bill for the three months to 31 December 2020 for £310. It eventually paid the bill on 31 January 2021. Its accounts for the year ended 31 December 2020 should show: Select one: O a. A statement of profit or loss charge for electricity of £760 and an accrual of £310 on the statement of financial position o b. A statement of profit or loss charge for electricity of £1,070 and an accrual of £310 on the statement of financial position O c. A statement of profit or loss charge for electricity of £760 and a prepayment of £310 on the statement of financial position o d. A statement of profit or loss charge for electricity of £1,070 and a prepayment of £310 on the statement of financial position
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Clark Ltd has been trading for one year as at 31 December 2020 and during that year it paid
electricity bills amounting to £760. On 14 January 2021 Clark received an electricity bill for
the three months to 31 December 2020 for £310. It eventually paid the bill on 31 January
2021. Its accounts for the year ended 31 December 2020 should show:
Select one:
O a. A statement of profit or loss charge for electricity of £760 and an accrual of £310 on the statement of financial
position
o b. A statement of profit or loss charge for electricity of £1,070 and an accrual of £310 on the statement of financial
position
O c. A statement of profit or loss charge for electricity of £760 and a prepayment of £310 on the statement of
financial position
o d. A statement of profit or loss charge for electricity of £1,070 and a prepayment of £310 on the statement of
fınancial position
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