10.Below are the purpose of the adjusted trial balance EXCEPT ___________.

• A. to ensure all expenses accounts with their adjusted balances
• B. to ensures that total debits equal to total credits
• C. to ensures the Statement of Financial Position will not be overstated or understated
• D. to ensures the Statement of Profit or Loss will not be overstated or understated.

11.The impact of overstating prepaid insurance is that __________

• A. non current assets will be overstated
• B. net income will be understated
• C. current assets will be overstated
• D. net income will be overstated

12.If the Accounts Receivables understated by RM100, the net profit is _____________

• A. overstated by RM100
• B. understated by RM100
• C. not affected
• D. no answer