David’s draft financial statements for the year to 31 October 20X6 report a loss of $2,972. When he prepared the financial statements, David did not include an accrual of $3,252 and a prepayment of $1,668.
What is David’s profit or loss for the year to 31 October 20X6 following the inclusion of the accrual and prepayment?
Answer
| $ | |
| Original loss | (2,972) |
| Accrual | (3,252) |
| Prepayment | 1,668 |
| Revised loss | (4,556) |