ACCA FA · Chapter 12 · Question 6 of 10
A company's statement of profit or loss shows finance costs of $9,800. Interest payable was $1,500 at the start of the year and $2,300 at the end. How much interest was paid during the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $9,000
Explanation
Interest paid = opening liability + charge - closing liability = $1,500 + $9,800 - $2,300 = $9,000. Reversing the opening and closing balances gives $10,600.
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