An error understating the purchases amount would overstate gross profit.

The provisional profits may change as a result of error …………….

Errors are …………… using journal entries.

The journal is a kind of book of prime entry.

An error overstating an expense item would also overstate the net profit.

An error understating an income item would also understate capital.

Errors of original entry happen when the entries have been made with the amount being entered wrongly in one account.

Errors in figures in the trading and profit and loss account will affect the calculation of profits.

Closing stock appears ………in the final accounts.

The value closing stock has got an effect on the profit for the period.

In the balance sheet, the net profit is added to capital.

Drawings might also take the …….of goods for private use

Drawings can be in the form of business facilities.

If drawings is in the form of goods, it is necessary to show a……….from purchases in the trading caccount.

The accrual amount is ……………to the figure shown in the trial balance when including the item in the profit and loss account.

A prepaid income is an income received in…………of the accounting period that it relates to.

An expense prepayment appears in the balance sheet as a……………..

An accrued expense represents an expense paid in advance.

A prepaid expense is shown as a current asset in the balance sheet.

An expense accrual appears in the balance sheet as a………..