Accounting for IGCSE & O level - Accounting Procedures (Section 4 - No. 22)

What is the impact on the draft profit and financial position when repairs ($200) were debited to the premises account?
Expenses were understated, Profit overstated, Non-current assets overstated.
Expenses were overstated, Profit understated, Non-current assets overstated.
Expenses were overstated, Profit overstated, Non-current assets understated.
Expenses were understated, Profit understated, Non-current assets unaffected.

Explanation

Expenses were overstated, Profit understated, Non-current assets overstated.

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