Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 45)
What is the effect on the financial statements if a building cost of £240 was debited to the repairs account?
Profit is overstated, fixed assets are understated
Profit is understated, fixed assets are understated
Profit is understated, fixed assets are overstated
Profit is overstated, fixed assets are overstated
Explanation
Expenses overstated. Profit will be understated. Fixed assets will be understated.
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