Accounting for IGCSE & O level - Accounting Procedures (Section 2 - No. 23)
If non-current assets are understated, which of the following could happen?
The business's financial position looks less strong than it is.
The business may find it easier to borrow money.
The owners may be more keen to invest.
The profit is likely to be overstated.
Explanation
If the value of non-current assets is understated, the financial position appears weaker.
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