CAF-1 · Chapter 12 · Question 2 of 15
In the absence of a complete double-entry system, an entity can determine its opening or closing capital by preparing which of the following?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A Statement of Affairs.
Explanation
When records are incomplete, an entity often prepares a 'Statement of Affairs'—which lists assets and liabilities at a specific date—to determine the opening or closing capital (net assets).
More Incomplete Records MCQs
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