When a purchases of non current asset worth RM5,000 is mistakenlyadded to the purchases account instead of the non current asset accouthe effect isBoth gross and net profit will be understatedOnly net profit will be overstatedO Both gross and net profit will be overstatedOnly net profit will be understatedPOCORad deht recovered is a payment received from account receivable fromff ar had debtSHOT ON POCO F2 PRO

Given: Non current assets should be shown in the balance sheet. But here by mistake debited to…

When a purchases of non current asset worth RM5,000 is mistakenly added to the purchases account instead of the non current asset accoun the effect is O Both gross and net profit will be understated O Only net profit will be overstated Both gross and net profit will be overstated

When a purchases of non current asset worth RM5,000 is mistakenly added to the purchases account instead of the non current asset accoun the effect is O Both gross and net profit will be understated O Only net profit will be overstated Both gross and net profit will be overstated

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

When a purchases of non current asset worth RM5,000 is mistakenly
added to the purchases account instead of the non current asset accou
the effect is
Both gross and net profit will be understated
Only net profit will be overstated
O Both gross and net profit will be overstated
Only net profit will be understated
POCO
Rad deht recovered is a payment received from account receivable from
ff ar had debt
SHOT ON POCO F2 PRO

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