Accounting for IGCSE & O level - Accounting Procedures (Section 15 - No. 43)
What is the effect on the financial statements when the purchases journal has been understated?
Profit is overstated.
Profit is understated.
Expenses are overstated.
No effect on profit.
Explanation
If purchases (expenses) are understated, profit will be overstated.
Comments (0)
