Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 35)
What accounting error does the text discuss as potentially leading to an overstatement of capital?
Incorrectly recording a revenue receipt as a capital receipt.
Incorrectly recording a capital receipt as a revenue receipt.
Miscalculating the cost of goods sold.
Failing to record depreciation expenses.
Explanation
The text specifically says recording a revenue receipt as a capital receipt would lead to an overstatement.
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