To convert the accounts prepared on cash system of accounting into mercantile system ofaccounting, which of these adjustments is not necessary

Question

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Adjustment of prepaid expenses and income received in advance

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Reconciliation of cash with bank

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Adjustment of outstanding expenses and income statement

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Distinction between revenue and capital expenditure/income

1.	To convert the accounts prepared on cash system of accounting into mercantile system ofaccounting, which of these adjustments is not necessary
A.	Reconciliation of cash with bank
B.	Adjustment of prepaid expenses and income received in advance
C.	Adjustment of outstanding expenses and income statement
D.	Distinction between revenue and capital expenditure/income
Answer» B. Adjustment of prepaid expenses and income received in advance

Discussion