Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 2)

What is the implication if a business owner underestimates the value of non-current assets?
Profit will be overestimated.
Profit will be unaffected.
Non-current assets will be overstated.
Profit will be underestimated.

Explanation

Underestimation lowers depreciation expense.

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