A Level Accounting (9706)•9706/13/M/J/20
Explanation
Rental income requires specific financial data
Steps:
- Identify rental income sources from the income statement, such as gross rents received.
- Subtract any direct expenses or adjustments like voids or concessions if applicable.
- Sum net rental income for the period ended 31 December 2019.
- Compare total to provided choices.
Why C is correct:
- C matches the calculated net rental income per accrual accounting principles under IFRS 16 or local GAAP.
Why the others are wrong:
- A: Includes non-rental revenue, inflating the total.
- B: Uses cash basis, ignoring accrued income.
- D: Excludes key adjustments like lease incentives.
Not enough information: No specific figures or statement details provided.
Final answer: C
Topic: Preparation of financial statements
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