WOODPECKER CORP. reported profit of P800,000 in 2018 under cash basis. The following items are relevant in converting the cash basis profit into accrual basis. Inventory, January 1 P1,000,000 Inventory, December 31 600,000 Receivables, January 1 300,000 Receivables, December 31 900,000 Payables increased by 500,000 How much is the profit under accrual basis of accounting? A. P500,000 B. P600,000 C. P700,000 D. P400,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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WOODPECKER CORP. reported profit of P800,000 in 2018 under cash basis. The
following items are relevant in converting the cash basis profit into accrual basis.
Inventory, January
1
P1,000,000
Inventory, December
31
600,000
Receivables, January
1
300,000
Receivables, December
31
900,000
Payables increased
by
500,000
How much is the profit under accrual basis of accounting?
A. P500,000
B. P600,000
C. P700,000
D. P400,000
Transcribed Image Text:WOODPECKER CORP. reported profit of P800,000 in 2018 under cash basis. The following items are relevant in converting the cash basis profit into accrual basis. Inventory, January 1 P1,000,000 Inventory, December 31 600,000 Receivables, January 1 300,000 Receivables, December 31 900,000 Payables increased by 500,000 How much is the profit under accrual basis of accounting? A. P500,000 B. P600,000 C. P700,000 D. P400,000
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