I'm refering to April 2006 Question 20 as an example. In this question it lists trade payables as at 31 december 2005 as 690,000, but then it says electicity used durring the year but not paid for was 6,000. If the company hasnt payed it, doesn't that just mean the company hasnt physically paid the electricity supplier, but the expense has been recognised in accordance with the Accurals concept. I'd assume the company has been billed for it, or knows it will be billed, so how are we supposed to know if the trade payables figure includes this or not? Shouldnt the question say somthing like "Used 6,000 of electicity for which the company has not been billed?"
Last edited by a moderator: Sep 19, 2009
